User Account

All Pages

Determine the fixed components using the high-low method

Assignment Help Accounting Basics
Reference no: EM131802060

Bonita Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production.

Costs Incurred
Production in Units 5,000 10,000
Production Costs Total Cost Cost/Unit Total Cost Cost/Unit
Direct materials $8,000 $1.60 $16,000 $1.60
Direct labor 9,500 1.90 19,000 1.90
Utilities 2,000 0.40 3,300 0.33
Rent 4,000 0.80 4,000 0.40
Maintenance 800 0.16 1,400 0.14
Supervisory salaries 1,000 0.20 1,000 0.10

(b) Classify each cost above as either variable, fixed, or mixed.

Exercise 19-3 The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.

Month Total 
Maintenance Costs		 Total 
Machine Hours
January $2,660 320
February 2,960 370
March 3,560 520
April 4,460 670
May 3,160 520
June 5,760 720


Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.)

Determine the fixed components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.)

Reference no: EM131802060

Questions Cloud

Create your nab company name and explain its significance : Develop a series of written papers / projects that you will later combine into a complete business plan for a Non-Alcoholic Beverage company.
What are the three factors of the fraud pyramid : What are the three factors of the fraud pyramid? What four disciplines make up the knowledge base of forensic accounting
Human resources manager for an international company : You are a human resources manager for an international company and have offered a $200,000-per-year position to an employee.
Explain the resource based view of the firm : Explain the resource based view of the firm and how it is used to identify sustainable competitive advantage.
Determine the fixed components using the high-low method : Determine the variable cost components using the high-low method
Practice open-book management : Many successful companies practice open-book management that includes disclosing financial information to all employees.
What specific environmental disclosure companies provide : In your opinion, are environmental disclosures in company annual reports necessary? What specific environmental disclosure should companies provide
Evaluate how the selected firm leverages its resources : Evaluate how the selected firm leverages its resources and capabilities to execute the business strategy.
Define an environment of trust with current relationships : How does the factors of building trust and "riding" the waves contribute to using world-altering strategies. Do you foster an environment of trust.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Merchandise costing 2400 was sold for 4000 to rd mince on

1. the following information will be used for all 5 of the following computational questions. in reviewing the books

  Data relating to the pension plan

Blaine Inc. shows the following data relating to its pension plan for 2011:

  Keenan computer chips inc is experiencing a period of rapid

keenan computer chips inc. is experiencing a period of rapid growth. earnings and dividends are expected to grow at a

  Compute the cost of direct materials used during the year

During the current year, the cost of direct materials purchased by a manufacturing firm was $340,000, and the direct materials inventory increased by $20,000. What was the cost of direct materials used during the year?

  What amount of dividend did stuart receive during each year

Stuart sold 200 shares he owned. He purchased them three years ago for $28 a share. With the following table what amount of dividend did Stuart receive

  Which systems study step is normally performed first

Which systems study step is normally performed first? What is the first step to be performed by most organizations in their accounting cycles?

  Explain the rule of lower of cost or market

Prepare York's schedule of cost of goods sold, with a supporting schedule of ending inventory. York uses the direct method of reporting losses from market decline of inventory.

  Risk of auditee use of data mining

Write a Report on the risk of auditee's use of data mining and how that affects the use of data mining. The Report should not exceed 3 pages, and contain a cover and reference page (which do not count towards the 3-page maximum).

  How should the loss and the reimbursement be reported

How will your answer to Part a change if in the subsequent year the manufacturer files bankruptcy and Jerry receives $1,500 in total and final payment for his claim?

  What is the annual depreciation for a piece of equipment

what is the annual depreciation for a piece of equipment with total acquisition cost of 200000 salvage value of 20000

  Calculate the target cost per unit

Symphony Sound, is designing a portable recording studio to be sold to consumers. Calculate the target cost per unit

  Classify cost as variable-fixed or mixed

Dousman Company reports the total costs at two levels of production - Classify cost as variable, fixed, or mixed.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd