During the months of January through June, the following total utility costs were paid at various...
During the months of January through June, the following total utility costs were paid at various production volumes: Month Total Utility Cost 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
Use the high-low method to calculate the cost formula utility costs. If the production volume were expected to be 50,000 units for the month of July, what amount of total costs would be expected?
Homework Answers
Answer
- All working forms part of the answer
- High Low Working
|
Months |
Units |
Cost |
|
|
High Level |
June |
72,000 |
$ 20,000.00 |
|
Low Level |
May |
24,000 |
$ 8,000.00 |
|
Difference |
48,000 |
$ 12,000.00 |
|
Difference in Cost |
$ 12,000.00 |
|
Difference in units |
48,000 |
|
Variable cost per unit |
$ 0.25 |
|
Working |
High Level |
Low Level |
|
|
A |
Total Cost |
$ 20,000.00 |
$ 8,000.00 |
|
B |
Total Units |
72000 |
24000 |
|
C |
Variable cost per unit |
$ 0.25 |
$ 0.25 |
|
D = B x C |
Total Variable cost |
$ 18,000.00 |
$ 6,000.00 |
|
E = A - D |
Total Fixed Cost |
$ 2,000.00 |
$ 2,000.00 |
- Variable Cost = $ 0.25 per unit
Fixed Cost = $ 2,000 per month. - ANSWERS
- #1 Cost Formula for Utility Cost = $ 2,000 + ($0.25 x No. of units)
- #2 Total Cost Expected for Jul with 50000 units = $ 2000 +
(0.25 x 50000)
= $ 14,500
Add Answer to:
During the months of January through June, the following total
utility costs were paid at various...
[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and...
[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and $800 during its lowest month. These costs corresponded to 22,000 units of production during the high month and 12,000 units during the low month. What is the variable cost per unit using the high-low method?
[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and...
[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and $800 during its lowest month. These costs corresponded to 22,000 units of production during the high month and 12,000 units during the low month. What is the variable cost per unit using the high-low method? Select one: a. $0.067 variable cost per unit. b. $0.075 variable cost per unit. c. $25 variable cost per unit. d. $0.04 variable cost per unit.
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March...
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March April May June 22,000 24,000 21,500 20,000 Wright maintains an ending inventory for each month in the amount of one times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $4 per unit and are paid for in the month after production. Labor cost is $8 per unit and is paid for in...
ABC has completed the following inventory purchases budget. January 12,000 Inventory purchases budget in units Each...
ABC has completed the following inventory purchases budget. January 12,000 Inventory purchases budget in units Each unit costs $5. ABC purchases all inventory on account and pays 40% in the month of purchase and the remaining 60% in the month following the purchase. Accounts payable balance at December 31 = $40,000 How much cash will be disbursed for inventory purchases in January? Select one: $24,000 X $52,000 none of these answers is correct $64,000
un Balance Sheets February 28 and January 31, 2020 February 28 January 31 $ 42,000 64,000...
un Balance Sheets February 28 and January 31, 2020 February 28 January 31 $ 42,000 64,000 81,000 $ 187,000 $ 37,000 53,000 94,000 $184,000 166,000 (24,000) $329,000 152,000 (21,000 $315,000 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par value, 40,000 shares authorized, 30,000 and 28,000 shares issued, respectively...
Esquire Products Inc. expects the following monthly sales: January February March April May June $ 38,000...
Esquire Products Inc. expects the following monthly sales: January February March April May June $ 38,000 July 29,000 August 22,000 September 24,000 October 18.ee November 16,eee December Total sales = $384,cee $ 32,000 36,000 39,000 44,000 52,00 34, eee Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each....
Bibber Co. produced 12,000 units and sold 8,000 units. Total costs incurred during the period were:...
Bibber Co. produced 12,000 units and sold 8,000 units. Total costs incurred during the period were: Direct materials, $18,000; Direct labor, $36,000; Factory overhead, $24,000; and Operating expenses, $48,000. The cost of the ending inventory is:
Required information (The following information applies to the questions displayed below.) Ferris Company began January with...
Required information (The following information applies to the questions displayed below.) Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost* $ 7 Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 8,000 14,000 Total Cost $ 42,000 64,000 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20...
Required information (The following information applies to the questions displayed below.) Ferris Company began January with...
Required information (The following information applies to the questions displayed below.) Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost* $ 7 Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 8,000 14,000 Total Cost $ 42,000 64,000 106,000 * Includes purchase price and cost of freight Sales Date of Sale Jan. 5 Jan. 12 Jan. 20...
Required information [The following information applies to the questions displayed below.] Ferris Company began January...
Required information [The following information applies to the questions displayed below.] Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost* $ 7 8 Units 6,000 8,000 Total Cost $ 42,000 64,000 Date of Purchase Jan. 10 Jan. 18 14,000 106,000 Totals *Includes purchase price and cost of freight Sales Units 4,000 2,000 4,000 Date of Sale Jan. 5...
Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March April May June 22,000 24,000 21,500 20,000 Wright maintains an ending inventory for each month in the amount of one times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $4 per unit and are paid for in the month after production. Labor cost is $8 per unit and is paid for in...
ABC has completed the following inventory purchases budget. January 12,000 Inventory purchases budget in units Each unit costs $5. ABC purchases all inventory on account and pays 40% in the month of purchase and the remaining 60% in the month following the purchase. Accounts payable balance at December 31 = $40,000 How much cash will be disbursed for inventory purchases in January? Select one: $24,000 X $52,000 none of these answers is correct $64,000
un Balance Sheets February 28 and January 31, 2020 February 28 January 31 $ 42,000 64,000 81,000 $ 187,000 $ 37,000 53,000 94,000 $184,000 166,000 (24,000) $329,000 152,000 (21,000 $315,000 Assets Cash Accounts receivable Merchandise inventory Total current assets Plant and equipment: Production equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Short-term debt Other accrued liabilities Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, no par value, 40,000 shares authorized, 30,000 and 28,000 shares issued, respectively...
Esquire Products Inc. expects the following monthly sales: January February March April May June $ 38,000 July 29,000 August 22,000 September 24,000 October 18.ee November 16,eee December Total sales = $384,cee $ 32,000 36,000 39,000 44,000 52,00 34, eee Cash sales are 40 percent in a given month, with the remainder going into accounts receivable. All receivables are collected in the month following the sale. Esquire sells all of its goods for $2 each and produces them for $1 each....
Required information (The following information applies to the questions displayed below.) Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost* $ 7 Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 8,000 14,000 Total Cost $ 42,000 64,000 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Jan. 5 Jan. 12 Jan. 20...
Required information (The following information applies to the questions displayed below.) Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost* $ 7 Date of Purchase Jan. 10 Jan. 18 Totals Units 6,000 8,000 14,000 Total Cost $ 42,000 64,000 106,000 * Includes purchase price and cost of freight Sales Date of Sale Jan. 5 Jan. 12 Jan. 20...
Required information [The following information applies to the questions displayed below.] Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Unit Cost* $ 7 8 Units 6,000 8,000 Total Cost $ 42,000 64,000 Date of Purchase Jan. 10 Jan. 18 14,000 106,000 Totals *Includes purchase price and cost of freight Sales Units 4,000 2,000 4,000 Date of Sale Jan. 5...
Most questions answered within 3 hours.
-
Write the complete mechanism for the reaction of
2-Methyl-2-butanol with H3PO4 to produce 2-Methyl-2-butene.
asked 1 hour ago -
Consider the reaction A −−→ 2 B. Initially, 1.50 mol A is
present and no B....
asked 1 hour ago -
A tennis match is played where the winner must win 3 sets to win
the match....
asked 3 hours ago -
Please write the hypothesis for the scenario below :
1) Let’s say a student wants to...
asked 5 hours ago -
Speculate on appearance of the C13 NMR spectrum of each of the
possible dialkylated products of...
asked 5 hours ago -
Which of these is NOT a reason to use IS as a competitive
advantage?
IS can...
asked 5 hours ago -
Show an Finite State Machine (deterministic or nondeterministic)
that accepts L={ω∈a,b,c*: ω
contains at least one...
asked 7 hours ago -
Describe the three types of financial statement analysis. How do
you do them? What do they...
asked 8 hours ago -
The ordinary least squares method of estimation minimizes the
estimated slope and intercept.
True or False?
asked 8 hours ago -
Billiard ball 1 is moving in the positive direction at a speed
of 3.00 m/s, and...
asked 8 hours ago -
Suppose you have two masses, M and m, separated by a distance R.
Suppose you made...
asked 8 hours ago -
Major principles of health care ethics include the principles
of respect for autonomy, nonmaleficence, beneficence, and...
asked 8 hours ago