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enot [183]
2 years ago
14

The following data pertains to activity and maintenance costs for two recent years:

Business
1 answer:
Aleksandr-060686 [28]2 years ago
6 0

Answer:

Y= 6000 + 0.75X

Explanation:

High and low cost technique

Using the a high and low technique, total cost can be analysed and separated into fixed and variable portion. This analysis helps in the forecast of cost and therefore important for the preparation of budget.

<em>Variable cost of maintenance</em>

= (Cost at high activity - Cost at low activity)/ (high activity - low activity)

VC per act. = ( $15000 - $12000)/(12,000-8000)

                   = $0.75 per activity

<em>Fixed cost of maintenance</em>

= Total cost at high activity - (VC per act × high activity)

=  $15,000 - ( $0.75 ×  12,000)

=   $6,000

The cost formula will be:

Y= 6000 + 0.75X

Where Y = maintenance cost, X= level of activity

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A groundskeeper must buy bags of fertilizer. Each bag treats $10000$ square feet of ground and costs $\$27$. The groundskeeper c
castortr0y [4]

Answer:

$162

Explanation:

As we know that

1 square feet = 0.1 square yard

which means

10,000 square feet = 0.1 × 10,000

                                = 1,000 square yards

And, the given cost is $27

So, the cost for 6,000 square yards would be

= (6,000 square yards × $27) ÷ (1,000 square yard)

= ($162,000) ÷ (1,000 square yard)

= $162

We applied the unitary method for above calculation.

5 0
2 years ago
You are planning to place an ad in a local newspaper. The size of the ad is 5 inches long by 4 columns wide. The newspaper's rat
Darya [45]
If you are planning to place an ad in a local newspaper with a size of 5 inches long by 4 columns wide and the newspaper's rate per column inch is $18, the ad will cost $360.

Solution: <span>5 inches x 4 columns = 20
               20 column inch x $18 = $360</span>
8 0
3 years ago
After graduating, you might decide to start a small business. As discussed in this chapter, owners of any business need to know
Elanso [62]

Answer:

When the value of the service ends, it will be necessary to include the charges for the truck, the granary and the land. It is not necessary to include your mother's service charges, as she is not charging for the service.

Explanation:

Setting up your own business can be quite a big challenge and you need a lot of control and planning so you don't have to lose money. One of the biggest challenges of becoming an entrepreneur is to price the service performed. As was said in the question above, many people do not know how to place a value on the service produced, mainly because they are unable to identify the expense for service production.

In summary, the expense to produce the service must take into account all charges related to any element necessary to perform the service. Thus, we can consider that in the case shown in the question above, it will be necessary for you to include expenses with the truck (gasoline, repairs, exchange of parts, etc.), with the rent of the granary, with the rent of the land and with the gratification of any employee. Since your mother is not charging for her services, this charge should not be included, however, your mother will only be in this service for two years. If the person replacing your mother charges for the service, this should be added to the cost.

5 0
2 years ago
Lakatos Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following
Pepsi [2]

Answer: $120,000

Explanation:

The cost, that would be allocated in the first-stage allocation to the Fabricating activity cost pool will be:

Wages and salaries = 10% × $420,000 = $42000

Depreciation = 5% × $240000 = $12000

Occupancy = 30% × $220,000 = $66,000

Therefore, the fabricating cost will be:

= $42000 + $12000 + $66000

= $120,000

6 0
2 years ago
Producing products that are individualy designed to meet the needs of a specific customer where each customized product is manuf
Brut [27]
This would be job order production because it’s the each customized product that is manufactured separately!
Hope this helps.
6 0
3 years ago
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