Case study, Cost Accounting

Assignment Help:

Managerial ACCT 2 Ulrich Framing is well known for the quality of its picture framing. Lucinda Ulrich, CEO, believes that the number of linear feet or framing used is the best is the best predictor of framing costs for her company. Her assistant accumulate the following data: [please note abbreviation meaning] LFF = Linear Feet of Framing; M= number of Mats; FC= Framing Costs January 20,000 (LFF) ; 7,100 (M); $17,0000 (FC); February 25,000 (LFF), 8,120 (M), 19,500 (FC); March 27,000 LFF, 8,500 (M), 21,000(FC); April 22,000(LFF), 8,400 (M), 18,000(FC); May 24,000 LFF, 8,300(M), 19,000(FC), June 30,000 LFF, 10,600(M) and 24,000(FC). Required A. Use the high/low method to develop a total cost formula for Ulrich Framing. You will need to perform two separate calculations, one for number of feet framing and one for number of mats; B. Compare the cost formulas developed in question A. Why are there differences?; C. On what basis should Ulrich select a formula to predict framing costs? Would you recommend that Ulrich rely on the results of the high/low method?


Related Discussions:- Case study

Specific oder costing, in what ways does specific order costing differ from...

in what ways does specific order costing differ from process costing

Advantages of average costing method, Average costing method has the follow...

Average costing method has the following main advantages: 1.It is a realistic costing method useful to management in analyzing operating results and appraising future production

Calculate the total net realizable value, Surplus Stores Ltd is a company w...

Surplus Stores Ltd is a company which frequently buy goods in large quantities and makes alterations to the goods before selling. At 31 Dec 2000 the following items were included i

Break even analysis, B REAK EVEN ANALYSIS Break even analysis is a bro...

B REAK EVEN ANALYSIS Break even analysis is a broadly used technique to study cost-volume-profit relationship.  It can be explained as - 'a system for determination of that le

Literature review - effectiveness auditing, EFFECTIVENESS AUDITING is one t...

EFFECTIVENESS AUDITING is one type of internal audit. Describe and evaluate this type of internal audit. What types of organisation would it be most useful for? Required: 1)

Calculate the weighted cost of capital calculation for firm, Ed Mettway was...

Ed Mettway was concerned about his firm's ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, estab

Calculate the contribution margin ratios, Problem 4-12 Multiproduct CVP [LO...

Problem 4-12 Multiproduct CVP [LO 4] Fidelity Multimedia sells audio and video equipment and car stereo products. After performing a study of fixed and variable costs in the prior

Write Your Message!

Captcha
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!

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