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MAXImum [283]
3 years ago
11

Walton Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in th

e spring and summer. Sales and production tend to decline in the fall and winter months. During year 2, the high point in activity occurred in June when it produced 207 boats at a total cost of $153,160. The low point in production occurred in January when it produced 38 boats at a total cost of $45,000. Required Use the high-low method to estimate the amount of fixed cost incurred each month by Walton Boat Company. Determine the total estimated cost if 200 boats are made.
Business
1 answer:
tangare [24]3 years ago
4 0

Answer:

Total estimated cost $148,680

Fixed cost $20,680

Explanation:

Using the high-low method to estimate the amount of fixed cost that is incurred each month

Units Cost

High 207 153,160

LOW 38 45,000

Difference 169 108,160

Variable cost per unit= 108,160/169

Variable cost per unit= 640

Fixed cost = 153,160-207*640

Fixed cost = 20,680

Total estimated cost= 200*640+20,680

Total estimated cost=128,000+20,680

Total estimated cost=148,680

Therefore Total estimated cost will be $148,680 and Fixed cost will be $20,680

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An enhancing qualitative characteristic of accounting information that refers to the financial statement users' ability to utili
Pani-rosa [81]

Answer: Comparability

Explanation:

Comparability describes information that is measured and reported in a similar manner for different companies. It helps users understand the real similarities and differences in economic activities between companies.

6 0
3 years ago
The parameters of a waiting line system include all of the following except: a. service time.b. cost of capacity.c. queue discip
natka813 [3]

Answer:

b. cost of capacity

Explanation:

A waiting line system can be defined as the number of customers (people) or items (products) that are waiting to receive a service or cleared for the service taken i.e to successfully complete a transaction.

Hence, the parameters of a waiting line system include all of the following;

a. Service time: this is simply the total time it takes to complete a transaction process successfully.

b. Queue discipline: it is uses rules such as first-in first-out.

c. Arrival rates: the time each customer arrives for the service.

7 0
3 years ago
Property rights are the right of the government to own, use, and dispose of resources in an economy.
motikmotik
The statement above is false. 


Property rights allude to the hypothetical and lawful responsibility for property by people and the capacity to decide how such property is utilized. In numerous nations, including the United States, people for the most part practice private property rights – the privileges of private people to collect, hold, delegate, lease or offer their property. In financial matters, property rights shape the reason for all market trade, and the allotment of property rights in a general public influences the productivity of asset utilize.
8 0
3 years ago
Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and whose variable expense is $1
brilliants [131]

Answer:

  1. 1200 BEPunits
  2. $14,400 BEP dollars
  3. second scenario
  •      1200 BEPunits
  • $14,400 BEP dollars

Explanation:

\frac{Fixed Cost}{contribution margin}  = BEPunits

contribution margin = Sales - Variable Cost

12 - 10 = 2 contribution margin

fixed expenses = 2,400

BEP = 2,400/2 = 1,200 units

<u>Resuming: </u>each unit contributes with $2 dollars therefore it needs to sale  1,200 untis to pay the fixed cost.

units x sales price = sales revenue

1,200 x 12 =  14,400 BEP in Dollars

Also it is posible to get this by using contribution margin ratio

in the BEP formula:

\frac{Fixed Cost}{Contribution Margin Ratio} = BEPdollars

contribution margin/sales price = 2/12 = 1/6

fixed cost /contribution margin ratio = 2,400/(1/6) = 14,400

Scenario were fixed cost increase:

increase in fixed/contribution margin + previous BEP = BEPunits

increase in fixed/contribution margin ratio + previous BEP = BEPdollars

600 fixed cost /contribution margin = 600/2 = 300 more units to our prevous 1,200 total of 1,500

600 fixed cost /contribution margin ratio = 600/(1/6) = $3,600 more sales revenue to our prevous 14,400 total of 18,000

3 0
3 years ago
Sanchez Company's output for the current period was assigned a $400,000 standard direct labor cost. The direct labor variances i
o-na [289]

Answer:

$406,000

Explanation:

Calculation to determine the actual total direct labor cost for the current period

Using this formula

Actual direct labor cost=Standard direct labor cost + unfavorable rate variance - favorable efficiency variance

Let plug in the formula

Actual direct labor cost=$400,000 + $10,000 - $4,000

Actual direct labor cost= $406,000

Therefore the actual total direct labor cost for the current period is $406,000

5 0
3 years ago
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