Question

In: Accounting

Cost Behavior SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its...

Cost Behavior

SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $584,685 + $1.42X, where X equals number of smokers. Last year, SmokeCity produced 21,300 smokers. Actual overhead costs for the year were as expected.

Required:

2. What is the total overhead cost incurred by SmokeCity last year?

$

3. What is the total fixed overhead cost incurred by SmokeCity last year?

$

4. What is the total variable overhead cost incurred by SmokeCity last year?

$

For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary.

5. What is the overhead cost per unit produced?

$ per unit

6. What is the fixed overhead cost per unit?

$ per unit

7. What is the variable overhead cost per unit?

$ per unit

8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 21,000 units and (b) 22,800 units. Round your answers to the nearest cent.

21,000 Units 22,800 Units
Unit cost $ $
Unit fixed cost
Unit variable cost

Solutions

Expert Solution

Answer-:

Please give a thumbs up. Thankyou...


Related Solutions

SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual...
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $603,000 + $1.35X, where X equals number of smokers. Last year, SmokeCity produced 22,500 smokers. Actual overhead costs for the year were as expected. 2. What is the total overhead cost incurred by SmokeCity last year? $ 3. What is the total fixed overhead cost incurred by SmokeCity last year? $ 4....
Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha...
Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $1,850,000 + $250X, where X = Number of Heart Stents. Last year, Alisha produced 52,000 stents. Actual maintenance costs for the year were as expected. Required: If required, round your answers to the nearest cent. 1. What is the total maintenance cost incurred by Alisha last year?...
Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha...
Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs can be represented by the following formula: Maintenance Cost = $2,125,000 + $375X, where X = Number of Heart Stents. Last year, Alisha produced 75,000 stents. Actual maintenance costs for the year were as expected. Required: If required, round your answers to the nearest cent. 1. What is the total maintenance cost incurred by Alisha last year?...
The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to...
The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year Aircraft Sales Average Price Disposable Constant Income (Dollars) (In constant 2006 dollars, billions) 2006 525 17,600 610 2007 450 8,000 610 2008 400...
Cream Cakes makes and sells cakes daily. Based on past experience the owner has estimated the...
Cream Cakes makes and sells cakes daily. Based on past experience the owner has estimated the following probabilities for the daily demand for fresh cream cakes:Daily Demand (cakes)Probability 300.1400.2500.3600.3700.1 The cakes cost $12 to make and are sold for $22 per cake. Cream Cakes believes a lot of their success is because they only sell fresh cakes. Any cakes unsold at the end of the day is mashed up and sold to the local piggery for $7.00 If the proprietor...
10. Exercise 3.10 The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales...
10. Exercise 3.10 The Reliable Aircraft Company manufactures small, pleasure-use aircraft. Based on past experience, sales volume appears to be affected by changes in the price of the planes and by the state of the economy as measured by consumers' disposable personal income. The following data pertaining to Reliable's aircraft sales, selling prices, and consumers' personal income were collected: Year Aircraft Sales Average Price Disposable Constant Income (Dollars) (In constant 2006 dollars, billions) 2006 525 16,800 610 2007 450 8,000...
QUESTION# 3   Zhou Inc. has the following cost data for its past year of operations. Zhou...
QUESTION# 3   Zhou Inc. has the following cost data for its past year of operations. Zhou Inc. produces tables and sells them for $150 each. You must show all your work in order to receive all the points available.                                                 $$/ Per unit Variable Costs: Direct Materials (DM)            $25 Direct Labour (DL)                $20 Variable Mf’g Overhead         $ 5 Variable Selling & Admin      $10 Total Variable costs                $60 Fixed Costs: Fixed Mf’g Overhead             $360,000 Fixed Selling & Admin          $200,000 Total Fixed...
Question 1 Swirlpool, Inc., has found that its cost of common equity capital is 16 percent,...
Question 1 Swirlpool, Inc., has found that its cost of common equity capital is 16 percent, and its cost of debt capital is 9 percent. If the firm is financed with 60 percent common shares and 40 percent debt, then what is the after-tax weighted average cost of capital for Swirlpool if it is subject to a 40 percent marginal tax rate? Group of answer choices 6.43% 9.64% 11.76% 15.29% Question 2pts Vanderheiden Inc. is considering two average-risk alternative ways...
Based on past experience, a bank believes that 7% of the people who receive loans will...
Based on past experience, a bank believes that 7% of the people who receive loans will not make payments on time. The bank takes a random sample of 200 recently approved loans. Check the conditions for the Central Limit Theorem. Sketch and label the distribution of the sample proportion, p. Include the mean and 3 standard deviations from the mean. What is the probability that more than 10% of these clients will not make timely payments? Find the probability that...
Based on past​ experience, a bank believes that 88​% of the people who receive loans will...
Based on past​ experience, a bank believes that 88​% of the people who receive loans will not make payments on time. The bank has recently approved 300 loans. Answer the following questions. ​a) What are the mean and standard deviation of the proportion of clients in this group who may not make timely​ payments? mu left parenthesis ModifyingAbove p with caret right parenthesisμpequals= SD left parenthesis ModifyingAbove p with caret right parenthesisSDpequals= ​(Round to three decimal places as​ needed.) ​b)...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT