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Irina18 [472]
3 years ago
5

The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $60,226 1,3

10 Units May 62,618 1,830 June 66,436 2,660 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. $ per unit
Business
1 answer:
Anton [14]3 years ago
3 0

Answer:

Variable cost per unit = $4.60

Explanation:

To calculate the element of variable cost in a mix cost using high-low method, we need to take the cost of the highest activity level and subtract the cost of the lowest activity level from it and divide the answer by the difference between the highest and the lowest activity levels.

<u>High-low method</u>

  • Variable cost per unit = (Highest Activity Cost - Lowest Activity Cost) / (Highest Activity Units - Lowest Activity Units)

  • Variable cost per unit = (66436 - 60226) / (2660 - 1310) = $4.60 per unit
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Answer:

$ 1,586.8743

Explanation:

Calculation to determine what will be the value of the certificate when it matures

Compounded annually

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Using this formula

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Therefore what will be the value of the certificate when it matures is $1586.8743

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On April 1, 2016, the premium on a one-year insurance policy was purchased for $3,000 cash with the insurance coverage beginning
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Answer:

C. Insurance expense will increase $2,250

Explanation:

On April 1 2016, the following journal entry will be recorded in respect of the premium paid on a one year insurance policy:

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Prepaid Insurance                          $3,000

Cash                                                                                  $3,000                                                                                                      

The year end given in this question is December 31, 2016 and the insurance premium is for one year and since the insurance premium is paid on April 1, 2016, therefore, only expense in respect of 9 months i.e. from April 1, 2016 to the December 31, 2016 will be recognised in this year. Remaining expense of three months will be recognised in the Year ended December 31,2017.

The following Journal entry will be recorded in respect of insurance expense in accounts on December 31, 2016.

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