1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Month January February March Utilities S 8,700 8,360 Machine Hours 800 720 8,950 810 April May 9,360 920 950 9,625 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) S4,400. B) $5,100. 9 $4,760. DJ $3,764.

1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Month January February March Utilities S 8,700 8,360 Machine Hours 800 720 8,950 810 April May 9,360 920 950 9,625 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) S4,400. B) $5,100. 9 $4,760. DJ $3,764.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows:
Barkoff Enterprises, which uses the high-low method to analye cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year Machine Hours 800 720 Month Utilities 8,700 8360 8,950 9,360 January February March S10 April May 920 9,625 950 June 9,150 900 The fixed utilities cost per month for Barkoff is: A) $4,400. 8) S5,100. O54,760. D) $3,764. E) None of the answers is correct.
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $8,700 800 February 8,360 720 March 8,950 810 April 9,360 920 May 9,625 950 June 9,150 900 The variable utilities cost per machine hour for Barkoff is: Select one: a. $5.00. b. $4.50. c. $0.18 d. $5.50.e. None of the answers is correct.
11) Barkoff Enterpeises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months ot the year: Month Machine Hours Utilities 8,700 January February March 800 720 810 920 8,360 8,950 April May June 9,360 9,625 9,150 950 900
Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January s8700 800 February 8360 720 March 8950 810 April 9360 920 May 9625 950 June 9150 900 1.The variable utilities cost per machine hour is: a) $0.18. b) an amount other than those listed above. C) $4.50. d) $5.00. e) $5.50. 2. The fixed utilities cost per month is: a) an amount other than those listed above. b) $4,760. c) $3,764. d) $5,100. e) $4,400.
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January 9,600 890 February 9,260 810 March 9,850 900 April 10,260 1,010 May 10,732 1,040 June 10,050 990 The fixed utilities cost per month for Barkoff is: Multiple Choice $3,440. $4,076. $4,436. • $4,776. None of the answers is correct
11) Barkoff Enterprises, which uses the high-low method to analyze cost determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Machine Hours 800 720 810 Month Utilities January February March 8,700 8,360 8,950 9,360 9,625 9,150 April May June 920 950 900 The fixed utilities cost per month for Barkoff is: A) $4,400. B) $5,100. 9 $4,760. D) $3,764. E) None of the answers is correct.
! Required information [The following information applies to the questions displayed below.] Acacia Manufacturing has compiled the following information from the accounting system for the one product it sells: Sales price Fixed costs (for the month) Marketing and administrative Manufacturing overhead Variable costs (per unit) Marketing and administrative Direct materials Manufacturing overhead Direct labor Units produced and sold (for the month) Required: a. Calculate the product costs per unit. Note: Round your answer to 2 decimal places. b. Calculate the period costs for the period. Product costs per unit b. Period costs $80 per unit $ 23,800 $ 9,100 $9 $20 $ 10 $16 21,000
Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: January: Utilities, P8,700, Machine Hours, 800; February: Utilities, P8,360, Machine Hours, 720; March: Utilities, P8,950, Machine Hours, 810; April: Utilities, P9,360, Machine Hours, 920; May: Utilities, P9,625, Machine Hours, 950; June: Utilities, P9,150, Machine Hours, 900. The total fixed utilities cost is: Choose among the numbers below the correct answer P4,760.P4,400.P5,100.P3,764.
Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: January: Utilities, P8,700, Machine Hours, 800; February: Utilities, P8,360, Machine Hours, 720; March: Utilities, P8,950, Machine Hours, 810; April: Utilities, P9,360, Machine Hours, 920; May: Utilities, P9,625, Machine Hours, 950; June: Utilities, P9,150, Machine Hours, 900. The variable utilities cost per machine hour is: Choose among the number below the correct answer: P5.00.P0.18.P4.50.P5.50