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

Employers retirement plan, Amy earns $35,000 working part time. Consequentl...

Amy earns $35,000 working part time. Consequently, she is not eligible to participate in her employer's retirement plan or health insurance program. Amy's expenses are summarized a

Calculate operating income under throughput costing, The follow data relate...

The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dire

Break-even chart, Break-Even Chart This is a diagrammatic presentation...

Break-Even Chart This is a diagrammatic presentation of the relationship among costs, prices, expenses and the sales volume. A break-even chart expresses revenue and expens

Economic order quantity, Economic Order Quantity This constitutes the...

Economic Order Quantity This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ord

Determine the current profits, Two firms compete in a homogenous product ma...

Two firms compete in a homogenous product market where the inverse demand function is P = 10 - 2Q (quantity is measured in millions). Firm 1 has been in business for 1 year, while

CONCEPT AND OBJECTIVES, what are the concept and objectives of cost account...

what are the concept and objectives of cost accounting?

Change in method of deprecation, Your client has asked you to provide guida...

Your client has asked you to provide guidance on the following potential accounting changes: (1) Change from straight-line method of depreciation to sum-of-the-years'-digits (2) Ch

What is operating income under absorption costing, Loring Company had the f...

Loring Company had the following data for the month: Variable costs per unit: Direct Materials $4 Direct Labor 3.20 Variable Overhead 1 Variable selling expense 0.40 Fixed Ov

Cash Budgeting, Stopover industries ltd, a recently incorporated company pl...

Stopover industries ltd, a recently incorporated company plans to go into production next year. the following standard cost matrix has been assembled for one of the products it pro

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