1.The following data pertains to activity and the cost of cleaning and maintenance for two recent months:
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Month 1
|
Month 2
|
|
Production volume
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2,400
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units
|
3,100
|
units
|
|
Cleaning and maintenance costs
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$1,000
|
|
$1,210
|
|
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The best estimate of the total month 1 variable cost for cleaning and maintenance is: (Do not round intermediate calculations.)
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2.
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At an activity level of 8,500 machine-hours in a month, Nooner Corporation's total variable production engineering cost is $708,900 and its total fixed production engineering cost is $168,210. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 8,900 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.)
|
|
$101.95
|
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$101.41
|
|
$102.48
|
|
$102.30
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3.Supply costs at Lattea Corporation's chain of gyms are listed below:
|
Client-Visits
|
Supply Cost
|
|
March
|
11,660
|
$28,574
|
|
April
|
11,456
|
$28,408
|
|
May
|
11,988
|
$28,832
|
|
June
|
13,300
|
$28,918
|
|
July
|
11,720
|
$28,635
|
|
August
|
11,206
|
$28,234
|
|
September
|
12,000
|
$28,833
|
|
October
|
11,691
|
$28,591
|
|
November
|
11,839
|
$28,716
|
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Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to:(Round your Variable cost per unit to 2 decimal places.)
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$2.02 per client-visit; $28,636 per month
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|
$.91 per client-visit; $17,471 per month
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$0.37 per client-visit; $24,024 per month
|
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$0.33 per client-visit; $24,529 per month
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