Question
In: Accounting
True or False Questions: 4. When analysing mixed costs with the high-low method, begin by identifying...
True or False Questions:
4. When analysing mixed costs with the high-low method, begin by identifying the period with the lowest level of activity and the period with the highest level of activity.
28. Organization-sustaining activities are carried out regardless of how many units are made, how many batches are run, or how many different products are made.
29. On a per unit basis, a fixed cost varies inversely with the level of activity.
30. One of the distinct advantages of a budget is that it can help to uncover potential bottlenecks before they occur.
31. A job cost sheet is a form prepared for each separate job that records the materials, labour, and overhead costs charged to the job.
Solutions
Expert Solution
| Q.No. | True/ False | Reason |
| 4 | TRUE | High low method is used to separate variable and fixed portion from the mixed cost. For this we begin by identifying the period with the lowest level of activity and the period with the highest level of activity |
| 28 | TRUE | Example of Organization-sustaining activities is Rent paid for administrative office building. It will be carried out regardless of how many units are made, how many batches are run, or how many different products are made |
| 29 | TRUE | Fixed remains constant in total so when no. of units increased per unit fixed cost decreased |
| 30 | TRUE | Budget is made in present by estimating future data. So that it can help to uncover potential bottlenecks before they occur. |
| 31 | TRUE | A job cost sheet is a form prepared for each separate job that records the materials, labor, and overhead costs charged to the job |
ekkarill92 answered 1 year agoRelated Solutions
Discuss what fixed, variable, and mixed costs are and the high-low method for dealing with mixed...
Discuss what fixed, variable, and mixed costs are and the
high-low method for dealing with mixed costs
In applying the high-low method of cost estimation to mixed costs, how is the total fixed...
In applying the high-low method of cost estimation to mixed
costs, how is the total fixed cost estimated?
If fixed costs increase, what would be the impact on the (a)
contribution margin? (b) income from operations?
An examination of the accounting records of Clowney Company
disclosed a high contribution margin ratio and production at a
level below maximum capacity. Based on this information, suggest a
likely means of improving income from operations. Explain.
1. When using the high-low method for estimating the fixed and variable portion of a mixed...
1. When using the high-low method for estimating the fixed and
variable portion of a mixed cost, you must first find the high and
low points of sales. Then, to find the variable cost per unit, you
must: Select one: a. Divide the difference in unit sales by the
difference in total cost b. Divide the difference in total cost by
the difference in unit sales c. Divide the difference in dollar
sales by the difference in total cost d....
Assume a merchandising company uses the high-low method to separate any mixed costs into their variable...
Assume a merchandising company uses the high-low method to
separate any mixed costs into their variable and fixed elements. It
provided the following income statements:
May
June
July
Sales in units
4,800
5,000
5,500
Sales
$
168,000
$
175,000
$
192,500
Cost of goods sold
86,400
90,000
99,000
Gross margin
81,600
85,000
93,500
Selling and administrative expenses:
Advertising
17,000
17,000
17,000
Shipping
16,800
17,500
19,250
Salaries and commissions
29,600
30,000
31,000
Total selling and administrative expenses
63,400
64,500
67,250
Net...
Using the high-low method, Vogel Corp. has $90,000 of mixed costs for 31,000 units produced in...
Using the high-low method, Vogel Corp. has $90,000 of mixed
costs for 31,000 units produced in June and $83,000 for 27,000
units produced in October.
Vogel's variable cost per unit (to the nearest penny) is:
Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to...
Pearson Electric Company uses the high-low method to analyze
mixed costs. The following information relates to the production
data for the first six months of the year.
Month
Cost(Y)
Hours(H)
January
$
8,220
365
February
$
10,000
800
March
$
8,240
480
April
$
8,360
400
May
$
10,380
1,085
June
$
9,750
775
How should the cost function be properly stated using the
high-low method?
rev: 10_11_2019_QC_CS-185082
Multiple Choice
Y = $6,630 + $2.00H.
Y = $7,125 + $3.00H....
Pearson Electric Company uses the high-low method to analyze mixed costs. The following information relates to...
Pearson Electric Company uses the high-low method to analyze
mixed costs. The following information relates to the production
data for the first six months of the year.
Month
Cost(Y)
Hours(H)
January
$
8,050
335
February
$
9,750
780
March
$
8,040
460
April
$
8,110
380
May
$
10,210
1,055
June
$
9,510
755
What is the estimated total cost at an operating level of 1,180
hours, using the high-low method? (Round variable cost per
unit to 2 decimal places.)
QUESTION ONE: MIXED COSTS WITH THE HIGH-LOW METHOD Addy Whyte Limited has estimated its total factory...
QUESTION ONE: MIXED COSTS WITH THE HIGH-LOW
METHOD
Addy Whyte Limited has estimated its total factory overhead
costs at both minimum and maximum levels of production for the next
period as given below:
Minimum level of production 185,000 machine hours
Maximum level of production 250,000 machine hours
The total factory overhead, made up of variable costs, mixed
costs and fixed costs, was estimated as $1,231,000 for 250,000
machine hours and $1,068,500 for 185,000 machine hours. At the
minimum production level...
(1) Please define TWO of the following terms. Activity Base (Driver) Fixed Costs High-Low Method Mixed...
(1) Please define TWO of the following terms.
Activity Base (Driver)
Fixed Costs
High-Low Method
Mixed Costs
Relevant Range
Variable Costs
(2) Consider McDonald’s for a moment and list an example of each
of the following costs that would be incurred by a McDonald’s
restaurant: (a) a fixed cost, (b) variable cost, and (c) mixed
cost. Please be specific and explain why each is a good fit in that
category.
(Note: For the variable cost on your list, please
identify...
a) Explain any FOUR (4) methods in analysing the mixed cost.
a) Explain any FOUR (4) methods in analysing the mixed cost.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Part A. Outline and explain all the VARIABLES and FACTORS that determine valuation and valuation analysis...
- Study the file polygon.h. It contains the header file for a class of regular polygons. Implement...
- what challenges can myths and stereotypes create for american indians?
- Date accuracy is very important because dates are used for discounts, payment terms and many reports....
- How many milliliters of concentrated hydrochloric acid solution (36.0% HCl by mass, density = 1.18 g/mL)...
- How does the rotating membership of the FOMC work? Why does the president of New York's...
- A gym owner is considering opening a location on the other side of town. The new...
ADVERTISEMENT