All categories

3 years ago

The following information is available for a company's maintenance cost over the last seven months.

Business

1 answer:

iris [78.8K]3 years ago

3 0

Answer:

Variable cost per unit= $240

Fixed costs= $1,910

Explanation:

Giving the following information:

June 9 $5,200

July 18 $6,650

August 12 4,850

September 15 5,750

October 21 6,650

November 24 6,950

December 6 3,350

To calculate the variable and fixed costs under the high-low method, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (6,950 - 3,350) / (21 - 6)

Variable cost per unit= $240

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 6,950 - (240*21)

Fixed costs= $1,910

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 3,350 - (240*6)

Fixed costs= $1,910

You might be interested in

The countries that have made the least use of securities markets are ________ and ________; in these two countries finance from

netineya [11]

Answer:

<u>Germany</u> and <u>Japan</u>

Explanation:

Financial intermediaries refer to the institutions which serve as a link between spenders and savers. Examples of financial intermediaries are banks, investment banks, pension funds, etc.

Securities markets refer to the markets which deal with the issuance of equity, debt and derivatives securities. Such issue of securities facilitates the raising of capital by businesses.

Direct finance usually takes place in capital markets dealing in securities with maturity period of more than an year, such as equity and bonds.

Indirect finance takes place through financial intermediaries such as banks, pension funds, etc. Such intermediaries remove the operation of middlemen between lenders and borrowers.

Germany and Japan have utilized their nation's bank credit based financial system.

3 0

3 years ago

Merchandise inventory includes: (You may select more than one answer. Single click the box with the question mark to produce a c

LuckyWell [14K]

Answer:

A and C are correct. Other two are incorrect

Explanation:

3 0

4 years ago

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for a. oper

Sonbull [250]

Answer:

The correct answer is letter "A": operating activities.

Explanation:

Operating Activities are the daily processes conducted by a company to generate income. They pertain to the company's core business activity such as sales and manufacturing and they provide most of the cash flow that determines whether a business is profitable.

When it comes to the Financial Statements the situation is not different. Interest payments to lenders and other creditors can be part of the day to day activity of a company. That is the reason why they are recorded in the operating activities section.

3 0

4 years ago

Prepaid expenses require what type of adjusting entry? Question options: Matched Accumulated Accrued Deferral

yanalaym [24]

Answer:

deferral

Explanation:

Adjusting entries are when changes are made to already recorded journal entries.

Categories of adjusting entries :

accrued revenues
accrued expenses
unearned revenues
prepaid expenses
depreciation.

Prepaid expenses are payments made for services yet to be delivered.

For example, paying for a year's worth of subscription on your streaming service

Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral

7 0

3 years ago

A company bought machinery on January 1, 2016, for $200,000. On January 1, 2018, the machinery had a book value of $100,000. It

eduard

Answer:

The impairment loss that should be recorded is:

= $40,000.

Explanation:

a) Data and Calculations:

Cost of machinery on January 1, 2016 = $200,000

Book value of machinery on January 1, 2018 = $100,000

Estimated future cash flows from the machinery = $70,000

Estimated fair value of the machinery = $60,000

Impairment loss to be recorded = Book value Minus Fair Market Value

= $40,000 ($100,000 - $60,000)

b) The impairment loss is calculated as the difference between the asset's carrying cost of $100,000 and the lower market value of $60,000 instead of $70,000.

4 0

3 years ago