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alexandr1967 [171]
3 years ago
9

The highest value of total cost was $ 710 comma 000 in June for Horchata​ Beverages, Inc. Its lowest value of total cost was $ 5

50 comma 000 in December. The company makes a single product. The production volume in June and December were 13 comma 000 and 5 comma 000 ​units, respectively. What is the fixed cost per​ month? (Round any intermediate calculations to the nearest​ cent, and your final answer to the nearest​ dollar.) A. $ 450 comma 000 B. $ 5 comma 000 C. $ 160 comma 000 D. $ 550 comma 000
Business
1 answer:
marta [7]3 years ago
6 0

Answer:

A. $ 450 comma 000

Explanation:

In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.

Variable cost per hour = (High total  cost - low total cost) ÷ (High production volume - low production volume)

= ($710,000 - $550,000) ÷ (13,000 units - 5,000 units )

= $160,000 ÷ 8,000 units

= $20

Now the fixed cost equal to

= High total cost - (High production volume × Variable cost per unit)

= $710,000 - (13,000 units × $20)

= $710,000 - $260,000

= $450,000

We simply applied the above formula

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Answer:

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December 31    Balance Sheet Accounts Receivable             392400

Explanation:

Harris Company

Credit Sales for the current year $2700,000

Credit Losses = 1% of $ 2700,000= $ 27000

Add Allowance for Doubtful Accounts $ 30600 Cr

Required Adjustments          $ 57,600 Cr

General Journal

Date                     Description            Debit                Credit

Dec.31           Bad Debts Expense    27000

                         Allowance for Doubtful Accounts   27000

December 31 Balance Sheet.

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Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)

                      Accounts Receivable             392400

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leva [86]

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Answer:

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Explanation:

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