Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Question: Answer question M1-19, M2-13, E2-19 (part a only) and E2-21 from Chapter 2

You must submit your work in Excel for all number problems. Use Word for narrative questions. If you use a Mac program, please save your file in a Windows-compatible form before submission.

ON EXCEL - M1-19 from Chapter 1

M1-19. Classifying Cost Drivers

Classify each of the following as structural, organizational, or activity cost drivers.

a. Apple Inc. reorganizes production facilities from a layout in which all similar types of machines are grouped together to a layout in which a set of machines is designated for the production of a particular product and that set of machines is grouped together.

b. A cable television company decides to start offering telephone service.

c. IBM decides to stop making personal computers.

d. Canon decides to start making high-volume photocopy equipment to compete head-to-head with Xerox.

e. The number of meals a cafeteria serves.

f. The number of miles a taxi is driven.

g. A company eliminates the position of supervisor and has each work group elect a team leader.

h. Tesla empowers employees to halt production if a quality problem is identified.

i. The number of tons of grain a ship loads.

j. Northbrook Mall decides to build space for 80 additional store.

M2-13. Classifying Cost Behavior

For each of the following situations, select the most appropriate cost behavior pattern (as shown in the illustrations following this problem) where the lines represent the cost behavior pattern, the vertical axis represents costs, the horizontal axis represents total volume, and the dots represent actual costs. Each pattern may be used more than once.

a. Variable costs per unit

b. Total fixed costs

c. Total mixed costs

d. Average fixed costs per unit

e. Total current manufacturing costs

f. Average variable costs

g. Total costs when employees are paid $15 per hour for the first 40 hours worked each week and $20 for each additional hour

h. Total costs when employees are paid $15 per hour and guaranteed a minimum weekly wage of $300

i. Total costs per day when a consultant is paid $200 per hour with a maximum daily fee of $1,000.

j. Total variable costs

k. Total costs for salaries of social workers where each social worker can handle a maximum of 25 cases

l. A water bill where a flat fee of $800 is charged for the first 100,000 gallons and additional water costs $0.005 per gallon

m. Total variable costs properly used to estimate step costs

n. Total materials costs

o. Rent on exhibit space at a convention

E2-19. Scatter Diagrams and High-Low Cost Estimation

Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. (Please see attachment e2-19 to answer this)

Month


Sales Orders

Order Processing Costs

1


3,000

$ 82,700

2


1,500

50,375

3


4,400

120,700

4


2,800

81,900

5


2,300

69,775

6


1,200

43,100

7


2,000

62,500

Required: a. Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs.

E2-21. Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation

Assume a Potbelly's restaurant has the following information available regarding costs at representative levels of monthly sales: (please see attachment e2-21 to answer this)

  Monthly sales in units
  5,000 8,000 10,000

Cost of food sold

$10,000

$16,000

$20,000

Wages and fringe benefits

4,200

4,320

4,400

Fees paid delivery help

1,100

1,760

2,200

Rent on building

1,100

1,100

1,100

Depreciation on equipment

900

900

900

Utilities

800

920

1,000

Supplies (soap, floor wax, etc.)

250

340

400

Administrative costs

1,700

1,700

1,700

Total

$20,050

$27,040

$31,700

Required: a. Identify each cost as being variable, fixed, or mixed.

b. Use the high-low method to develop a schedule identifying the amount of each cost that is mixed or variable per unit. Total the amounts under each category to develop an equation for total monthly costs.

c. Predict total costs for a monthly sales volume of 9,800 units.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92760413
  • Price:- $70

Priced at Now at $70, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Question - oriole company manufactures equipment orioles

Question - Oriole Company manufactures equipment. Oriole's products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are q ...

Question - bonita corporation had january 1 and december 31

Question - Bonita Corporation had January 1 and December 31 balances as follows. 1/1/17 12/31/17 Inventory $90,000 $109,000 Accounts payable 53,000 62,000 For 2017, cost of goods sold was $441,000. Compute Bonita's 2017 ...

Question - on november 1 wti agreed to provide a special

Question - On November 1, WTI agreed to provide a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,400, and the client paid the first five months' fees in advance. ...

Question - consider dereks budget information materials to

Question - Consider Derek's budget information: materials to be used totals $64,500; direct labor totals $200,400; factory overhead totals $398,600; work in process inventory January 1, $188,400; and work in progress inv ...

Questions 1did the employees know of the lost inventory2why

Questions: 1 Did the employees know of the lost inventory? 2 Why the auditor did not take any action against the insurance company? 3 Was there any conspiracy involved in between the insurance company and the auditor? 4 ...

Question - aztec company sells its product for 160 per unit

Question - Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 3,500 $560,000 May (actual) 2,400 $384,000 June (budgeted) 5,000 $800,000 July (budgeted) 4 ...

Question - speedy delivery company purchases a delivery van

Question - Speedy Delivery Company purchases a delivery van for $43,200. Speedy estimates that at the end of its four-year service life, the van will be worth $6,800. During the four-year period, the company expects to d ...

Question what discoveries have you made in your research

Question: What discoveries have you made in your research and how does this information inform your ability to evaluate effective coaching and its impact on organizations? Consider these guiding questions: 1. What core c ...

Questions answer the following questions all the questions

Questions: Answer the following questions. All the questions below are based on it. You are NOT allowed to cite information from other sources!!! It is based on Australian accounting system so do not rely too much on you ...

Question - sanchez company completes these transactions and

Question - Sanchez Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $45,300 of merchandise from Lee Industries, invoice da ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As