60% increase During the months of January through June, the following total utility costs were paid at various production volumes: Month Total Utility Costs Total Production Volume January $10,000 32,000 units February 14,000 52,000 units March 16,000 64,000 units April 12,000 40,000 units May 8,000 24,000 units June 20,000 72,000 units a. Use the high-low method to calculate the cost formula utility costs. b. If the production volume were expected to be 50,000 units for the month of July, what amount of total costs would be expected?

60% increase During the months of January through June, the following total utility costs were paid at various production volumes: Month Total Utility Costs Total Production Volume January $10,000 32,000 units February 14,000 52,000 units March 16,000 64,000 units April 12,000 40,000 units May 8,000 24,000 units June 20,000 72,000 units a. Use the high-low method to calculate the cost formula utility costs. b. If the production volume were expected to be 50,000 units for the month of July, what amount of total costs would be expected?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
During the months of April through September, the following total utility costs were paid at various production volumes: Total Total Utility Production Month Costs Volume April $ 5,000 16,000 units May 7,000 26,000 units June 8,000 32,000 units July 6,000 20,000 units August 4,000 12,000 units September 10,000 36,000 units a. Use the high-low method to calculate the cost formula utility costs. b. If the production volume were expected to be 22,000 units for the month of November, what amount of total costs would be expected?
Following information relating to a type of raw material is available: Annual demand 2,400 units, Unit price OMR .2.400, Ordering cost per order OMR.4.000, Storage cost 2% per annum, Interest rate 10% per annum. Calculate Economic Order Quantity.
Discussion QuestionThe table below shows monthly data collected on production costs and on the number ofunits produced over a twelve month period. Month Total Production Costs Level of Activity (Units Produced)July $230,000 3,500August 250,000 3,750September 260,000 3,800October 220,000 3,400November 340,000 5,800December 330,000 5,500January 200,000 2,900February 210,000 3,300March 240,000 3,600April 380,000 5,900May 350,000 5,600June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost…
Discussion QuestionThe table below shows monthly data collected on production costs and on the number of unitsproduced over a twelve month period.Month Total ProductionCostsLevel of Activity(Units Produced)July $230,000 3,500August 250,000 3,750September 260,000 3,800October 220,000 3,400November 340,000 5,800December 330,000 5,500January 200,000 2,900February 210,000 3,300March 240,000 3,600April 380,000 5,900May 350,000 5,600June 290,000 5,000a) Determine the variable cost per unit and the fixed cost using the high-low method.b) What is the equation of the total mixed cost function?c) Based on the High-Low method, what is the total production costs if 6,500 units areproduced?d) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.e) Using the line of best-fit, determine the company’s fixed cost per month and the variablecost per unit. (Use 0 & 5,000…
The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Total Costs Production January $107,100 765 units February 109,480 1,490 March 166,600 2,465 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. a. Variable cost per unit $ b. Total fixed cost $
The manufacturing costs of Mocha Industries for 3 months of the year are as follows: Total Cost ProductionApril $58,354 1,870 units May $61,504 2,620 June $66,460 3,800 Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed costs. Round "Cost per unit" answer to two decimal places. a. Variable cost per unitb. Total fixed costs
Wilco's production and cost data for the first six months are presented below: Month January February March April May June 33 per unit O 40 per unit O.44 per unit Cost O.37 per unit $11,000 $10,800 $12,500 $13,200 $13,000 $11,850 Units Produced Use the high-low method to calculate Wilco's variable cost per unit. 6,000 6,500 8,000 11,500 12,000 9,000
The manufacturing costs of Calico Industries for three months of the year are provided below: Total Cost Production (units) Аpril $116,100 281,600 May 90,500 164,900 June 108,300 242,000 Using the high-low method, the variable cost per unit and the total fixed costs are Oa. $2.20 per unit and $5,415 Ob. $0.40 per unit and $27,074 Oc. $3.96 per unit and $5,415 Od. $0.22 per unit and $54,148
The manufacturing costs of Mocha Industries for 3 months of the year are as follows: April May June Total Cost Production $76,368 2,420 units 81,606 3,390 89,814 4,910 Using the high-low method, determine the (a) variable cost per unit and (b) the total fixed costs. Round "Cost per unit" answer to two decimal places. a. Variable cost per unit b. Total fixed costs per unit
The quarterly production and overhead costs for the year are shown below. Quarter Production (units) Overheads 14,900 $66,000 2 5,200 $69,000 3 5,400 $70,000 4 4,400 $60,000 What is the variable overhead cost per unit according to the high-low method?

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Month	Total Utility Costs	Total Production Volume
January	$10,000	32,000 units
February	14,000	52,000 units
March	16,000	64,000 units
April	12,000	40,000 units
May	8,000	24,000 units
June	20,000	72,000 units