All categories

3 years ago

High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the year follow:

Business

1 answer:

Citrus2011 [14]3 years ago

4 0

Answer:

a. Variable cost per unit = High cost - Low cost / High volume - Low volume

Variable cost per unit = $355,880 - $228,780 / 4,960 - 1,860

Variable cost per unit = $127,100 / 3,100

Variable cost per unit = $41

b. Total cost = Fixed cost + Variable cost

$228,780 = Fixed cost + (1,860 * $41)

$228,780 = Fixed cost + $76,260

Fixed cost = $228,780 - $76,260

Fixed cost = $152,520

You might be interested in

The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four-month perio

Eduardwww [97]

Answer:

$33,000

Explanation:

The calculation of the fixed cost and the variable cost per machine hour by using high low method is shown below:

Variable cost per hour = (High manufacturing overhead cost - low manufacturing overhead cost) ÷ (High machine hours - low machine hours)

= ($198,000 - $153,000) ÷ (110,000 hours - 80,000 hours)

= $45,000 ÷ 30,000 hours

= $1.5

Now the fixed cost is

= High manufacturing overhead cost - (High machine hours × Variable cost per hour)

= $198,000 - (110,000 hours × $1.5)

= $198,000 - $165,000

= $33,000

6 0

3 years ago

Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for

V125BC [204]

Answer:

1,500 units; 1,000 units

Explanation:

Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit

Fixed cost = $160,000

Sales Mix = 60% of X + 40% of Y

= 0.6X + 0.4Y

So,

Contribution Margin of the Mix:

= (60% × contribution margin of X) + (40% × contribution margin of Y )

Contribution Margin of the Mix per unit:

= (60% × 80) + (40% × 40)

= 48 + 16

= $64

Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit

= 160,000 ÷ 64

= 2,500 unit

At the Level of break even :

Unit of X at break-even:

= 60% of 2,500

= 1,500 units

Unit of Y at break-even:

= 40% of 2,500

= 1,000 units

3 0

3 years ago

An electrical contractor's records during the last five weeks indicate the number of job requests: Week 1 2 3 4 5 Requests 20 22

White raven [17]

Answer:

Please see attachment

Explanation:

Please see attachment

4 0

3 years ago

Why is perceptiveness an important trait to have as an entrepreneur??????

Sergeeva-Olga [200]

It is important trait to have as an entrepreneur, because you have to have different perceptive's of the type of people you are selling to. As in you just can't have one persons point of view.

7 0

3 years ago

The primary purpose of __________ is to preserve memories of persons or events.

kupik [55]

<span>monuments is the right answer </span>

3 0

3 years ago