A department of Delta Company incurred the following costs for the month of June. Variable costs, and the variable portion of mixedcosts, are a function of the number of units of activity:Activity level in unitsVariable costsFixed costsMixed costsTotal costsDuring July, the activity level was 9,000 units, and the total costs incurred were $69,000.Required:a. Calculate the variable costs, fixed costs, and mixed costs incurred during July.b. Use the high-low method to calculate the cost formula for mixed cost.Complete this question by entering your answers in the tabs below.Required A Required B4,500$ 8,10030,00020,800$ 58,900Calculate the variable costs, fixed costs, and mixed costs incurred during July.Variable costFixed costMixed costJuly< Required ARequired B>

VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Answered: A department of Delta Company incurred…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14PB: Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an...

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Summarized data for Backdraft Co. for its first year of operations are as follows: A. Prepare an income statement under absorption costing B. Prepare an income statement under variable costing
A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity: Activity level in units 4,500 Variable costs $ 7,875 Fixed costs 29,000 Mixed costs 24,600 Total costs $ 61,475 During October, the activity level was 7,600 units, and the total costs incurred were $68,000.Required:a. Calculate the variable costs, fixed costs, and mixed costs incurred during October. b. Use the high–low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round your answers to 2 decimal places.)
Hello, I have another question. A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity. Activity level in units: 4,000 Variable Costs $8,600 Fixed costs 31,000 Mixed costs 17,050 Total costs $56,650 During October, the activity level was 9,000 units, and the total costs were $68,500. I got the following for part A. A. Variable cost: $19,350 Fixed cost: $31,000 Mixed cost: $18,150 B. Use the high-low method to calculate the cost formula for mixed cost. Do not round intermediate calculations and round your answers to 2 decimal places. Cost formula: ? + $0.22 per unit. My question is on the cost formula in part B. Thanks.
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 110 170 130 160 220 250 70 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit produced Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Maintenance Cost $ 5,320 7,300 5,980 Lowest volume Variable cost per unit produced Total variable costs at lowest volume Total fixed costs 6,970 8,950 9,940 4,000 High-Low method - Calculation of variable cost per unit produced 0
Identify cost graphsThe following cost graphs illustrate various types of cost behavior: a. Total direct materials costb. Electricity costs of $1,000 per month plus 50.10 per kilowatt-hour c. Per-unit cost of straight-line depreciation on factory equipmentd. Salary of quality control supervisor, 520,000 per monthe. Per-unit direct labor cost
During the months of April through September, the following total utility costs were paid at various production volumes: Total Total Utility Production Month Costs Volume April $ 5,000 16,000 units May 7,000 26,000 units June 8,000 32,000 units July 6,000 20,000 units August 4,000 12,000 units September 10,000 36,000 units a. Use the high-low method to calculate the cost formula utility costs. b. If the production volume were expected to be 22,000 units for the month of November, what amount of total costs would be expected?
Requirements:1. Compute the net income for each month using variable costing.
The controller at Wesson Company's manufacturing plant has provided you with the following information for the first quarter's operations: Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter Variable marketing and administrative costs Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this question by entering your answers Required A Required B Prepare a contribution margin income statement. Contribution Margin Income Statement
Required: 1. Unit product cost under variable and absorption costing approach, respectively, must be? 2. Contribution margin for the month under the variable costing approach is? 3. Gross margin for the month under the absorption costing approach is? 4. Period cost for the month under the variable costing approach is? 5. Period cost for the month under the absorption costing approach is?
Learned Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions a. Total product cost b. Total period cost Cost per Unit Cost per Period $ 5.80 $ 4.00 $ 1.60 c. Contribution margin per unit d. Total direct manufacturing cost e. Total indirect manufacturing cost $ 0.70 $ 0.60 Variable administrative expense Fixed selling and administrative expense Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units? c. If the selling price is $23.30 per unit, what is the contribution margin per unit sold? Note: Round your answer to 2 decimal places. d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred? e. If 7,000 units are produced, what is the total amount of indirect manufacturing…
A. Year 2 production is expected to be 20,000 billable hours. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for year 2? B. Determine the total costs per billable hour for year 1 and 2.
The controller of Ivanhoe Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,041 3,456 4,147 5,184 3,686 5,633 Total Machine Hours 4,032 Variable cost per machine hour $ 4,608 6,912 9,101 5,760 9,216 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)

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