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kakasveta [241]
3 years ago
9

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period

Business
1 answer:
Alex17521 [72]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Data for the past 8 months were collected:

Month Labor Cost Employee Hours

January $7,000  360

February $8,140 550

March $9,899 630

April $9,787 610

May $8,490 480

June $7,450 350

July $9,490 570

August $7,531 310

Total Labor Cost = $5,237 + ($7.40 x Employee Hours)

1) To calculate the variable cost we need to use the following formula:

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

Variable cost per unit= (9,899 - 7,000) / (630 - 310)= $9.06 per unit

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

Fixed costs= 9,899 - (9.06*630)= $4,191

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

Fixed costs= 7,000 - (9.06*310)= $4,191

3) direct labor hours= 4,000

Total Labor Cost = $5,237 + ($7.40 x Employee Hours)

Total Labor Cost= 5,237 + (7.4*4,000)= $34,837

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Answer:

product

Explanation:

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We can use coca-cola as an example.

They separate the office to cater specific products only. They do this to increase the efficiency of the production. Focusing only on one product  will make it easier for the workers to understand the type of customers that they face in the market and the type of  materials and production method that will be the most cost efficient.

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Some large hardware stores, such as Home Depot, boast of carrying as many as 20,000 different products in each store. This volum
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Explanation:

The extremely large amount of products that large hardware stores, such as Office Depot, carry, are most likely a consequence of the combination of these factors. On the one hand, the customers who go to this stores have a particular want, and their purchases are intended to satisfy these wants. On the other hand, the producers also have to make a choice, and they generally chose the products that are most likely to maximize their profits.

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3 years ago
Use the information below to answer questions 4-7. Drake Company's income statement for the most recent year appears below:
Colt1911 [192]

Answer:

(A) $731,250

Explanation:

The formula to compute the break-even point in sales dollars is shown below:

= (Fixed expenses or Fixed cost) ÷ (Contribution ratio)

where,

Contribution ratio = Contribution margin ÷ sales

                             = $208,000 ÷ $650,000

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Now put the values to the above formula

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The economic approach tries to find solutions for problems optimizing the use of economic resources, therefore reducing costs and increasing benefits for every dollar spent.

Resources are scarce and that includes everyone, from a normal individual, to the richest person in the world, or the richest country in the world. The economic approach states that we should all try to maximize the benefits we obtain while exchanging resources. For example, if we need to study for a text and we know that solving problems helps us to learn more than just reading, then we should spend more time solving problems than reading because that way we can increase our benefits.

The US government and every other government in the world works on a budget and the money it spends doing A, will not be spent doing B. So the government must decide which actions to take in order for maximizing the benefits of the population (i.e. choose between A or B depending on which causes the greatest common good).

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