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tensa zangetsu [6.8K]
3 years ago
14

Jamieson Enterprises has presented the following information for the past year of operations Month Units Total Cost January 2,80

0 $ 9,200 February 3,500 $ 11,300 March 1,900 $ 6,500 April 2,700 $ 8,900 May 4,500 $ 14,300 June 5,300 $ 16,700 July 7,200 $ 22,400 August 5,100 $ 16,100 September 4,700 $ 14,900 October 3,900 $ 12,500 November 3,400 $ 11,000 December 2,400 $ 8,000 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. b. What would total costs be for a month with 8,200 units produced?
Business
1 answer:
aivan3 [116]3 years ago
3 0

Answer:

a.

VC/unit = $3 per unit

Fixed Cost = $800

b.

Total Cost = $25400

Explanation:

a.

The high-low method is used to separate the components of a mixed cost and it calculates the variable cost component in a mixed cost. The formula to calculate the variable cost per unit under the high-low method is as follows,

VC/unit = [Highest Activity cost - Lowest Activity Cost] / [Highest Activity units - Lowest Activity units]

VC/unit = [22400 - 6500] / [7200 - 1900]

VC/unit = $3 per unit

Using figures from March, The total fixed costs will be,

Fixed cost = 6500 - [3 * 1900]

Fixed Cost = $800

b.

Total cost in a month with 8200 units will be,

Total Cost = Total Fixed cost + Total variable costs

Total Cost = 800 + (3 * 8200)

Total Cost = $25400

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On January 1, Year 1, the Accounts Receivable balance was $20,100 and the balance in the Allowance for Doubtful Accounts was $1,
wel

Answer:

$18,400

Explanation:

A/R                                                               $20,100

Less: Allowance for doubtful accounts         ($1,700)

net realizable value of A/R                             $18,400    

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4 0
3 years ago
Identify the following is structural, frictional, cyclical and seasonal employment.
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Answer:

Frictional unemployment occurs when people decided to leave their jobs and look for another or people join the labor force for the first time.

Structural unemployment arises from a situation where there is a mismatch between the skills needed in an economy and the skills possessed by people. Happens a lot when employees need to adapt to new technology.

Cyclical unemployment happens as a result of the economy either growing or shrinking.

a. Andrew recently lost his job as an accountant for a large firm because he only knows how to perform the job using a general ledger (paper and pencil), and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ <u>STRUCTURAL UNEMPLOYMENT. </u>

b. Sam recently lost his job as an accountant for a large firm because he only knows how to perform the job a using a general ledger and has been unwilling to learn how to use newly invented accounting software provided by the company. ⇒ <u>STRUCTURAL UNEMPLOYMENT.</u>

c. Teresa just graduated from college and is looking for a full time position with an investment banking firm. ⇒ <u>FRICTIONAL UNEMPLOYMENT. </u>

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8 0
3 years ago
The primary responsibility for fair and accurate financial reporting rests with the:
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Answer:

The correct answer is (D)

Explanation:

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3 years ago
A favorable materials price variance coupled with an unfavorable material usage variance would most likely result from:
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3 years ago
A firm has the following accounts and financial data for 2007:
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Answer:

The correct answer is $302.40.

Explanation:

According to the scenario, the computation can be done as:

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= $3,060 - $1,800 - 600

= $660

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= $534

Now we deduct tax rate, then

= $534 × $213.60    ( $534× 40%)

= $320.40

Now we finally deduct the dividends to get the firm's earning to common shareholder's, then

= $320.40 - 18

= $302.40

Hence, the firm's earning to common shareholder's is $302.40.

5 0
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