Question

In: Accounting

Chapter 18 A firm operated at 80% of capacity for the past year, during which fixed...

Chapter 18 A firm operated at 80% of capacity for the past year, during which fixed costs were $197,000, variable costs were 67% of sales, and sales were $1,096,000. Operating profit was a. $131,744 b. $734,320 c. $361,680 d. $164,680 Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,144 14,702 April 2,636 9,675 May 2,885 12,312 June 3,844 18,334 a.$0.98 b.$1.67 c.$0.94 d.$0.14 Costs that vary in total in direct proportion to changes in an activity level are called a. sunk costs b. differential costs c. variable costs d. fixed costs When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as the number of products does not exceed a. fifteen b. two c. three d. there is no limit Rusty Co. sells two products, X and Y. Last year, Rusty sold 5,000 units of X and 35,000 units of Y. Related data are: Unit Selling Unit Variable Unit Contribution Product Price Cost Margin X $110.00 $70.00 $40.00 Y 70.00 50.00 20.00 What was Rusty Co.'s sales mix last year? a.58% X, 42% Y b.12.5% X, 87.5% Y c.60% X, 40% Y d.30% X, 70% Y As production increases, variable costs per unit a. stay the same b. increase c. decrease d. either increase or decrease, depending on the fixed costs Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,100 15,000 April 2,700 10,000 May 2,900 12,000 June 3,600 18,000 a.$10.00 b.$0.67 c.$0.11 d.$0.63 Spice Inc.'s unit selling price is $54, the unit variable costs are $36, fixed costs are $109,000, and current sales are 10,900 units. How much will operating income change if sales increase by 5,400 units? a.$196,200 increase b.$293,400 increase c.$196,200 decrease d.$97,200 increase Timmer Corporation just started business in January. There were no beginning inventories. During the year, it manufactured 12,000 units of product, and sold 10,000 units. The selling price of each unit was $20. Variable manufacturing costs were $4 per unit, and variable selling and administrative costs were $2 per unit. Fixed manufacturing costs were $24,000, and fixed selling and administrative costs were $6,000. What would Timmer's net income be for the year using absorption costing? a.$4,000 b.$110,000 c.$106,000 d.$114,000 O'Boyle Co.'s fixed costs are $256,000, the unit selling price is $36, and the unit variable costs are $20, what is the break-even sales (units)? a. 12,800 units b. 7,111 units c. 16,000 units d. 4,571 units

Solutions

Expert Solution

Ans 1
Sales $1,096,000
Less; variable cost (67%) $734,320.00
Less: fixed cost 197000
Net operating Income $164,680.00
Option D $164680
ans 2
Variable cost per unit=Cost at highest level-cost at lowest level/Max hours-Min hours
(3844-2636)/(18334-9675) 0.14
Option d $.14
ans 3
It is variable cost
As variable cost per unit remains same but with the change in level of
activity the total variable cost increases or decreases as pe rthe level of activity
ans 4
d) there is no limit
A business can have n number of products and the break even point can be
determined by using various methods.
ans 6
a) stay the same
Variable cost per unit does not change with change in output

Dear student I have done first four multiple choice question and also 6th one.


Related Solutions

29. A. A firm operated at 80% of capacity for the past year, during which fixed...
29. A. A firm operated at 80% of capacity for the past year, during which fixed costs were $203,000, variable costs were 69% of sales, and sales were $1,082,000. Operating profit was a. $746,580 b. $105,936 c. $335,420 d. $132,420 28. B. Zeke Company sells 24,700 units at $14 per unit. Variable costs are $7 per unit, and fixed costs are $38,100. The contribution margin ratio and the unit contribution margin are A. 2% and $7 per unit B. 50%...
Hayes Company operated at normal capacity during the current year, producing 54039 units of its single...
Hayes Company operated at normal capacity during the current year, producing 54039 units of its single product. Sales totalled 27015 units at an average price of $21.50 per unit. Variable manufacturing costs were $10.69 per unit, and variable marketing costs were $8.70 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $155315 for manufacturing and $59742 for marketing. What is Hayes break-even point in units for the current year? Select one: a. 19894 b. 73609...
Hayes Company operated at normal capacity during the current year, producing 49034 units of its single...
Hayes Company operated at normal capacity during the current year, producing 49034 units of its single product. Sales totalled 38370 units at an average price of $22.60 per unit. Variable manufacturing costs were $10.00 per unit, and variable marketing costs were $4.72 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $175360 for manufacturing and $78546 for marketing. There were no opening inventories. What is Hayes operating income (loss) under absorption costing? Select one: a....
Hayes Company operated at normal capacity during the current year, producing 53929 units of its single...
Hayes Company operated at normal capacity during the current year, producing 53929 units of its single product. Sales totaled 43419 units at an average price of $23.23 per unit. Variable manufacturing costs were $9.14 per unit, and variable marketing costs were $5.35 per unit sold. Fixed costs were incurred uniformly throughout the year and amounted to $198830 for manufacturing and $75151 for marketing. If Hayes’s variable manufacturing costs unexpectedly increase by 10%, what is the new unit selling price that...
13. A. A business operated at 100% of capacity during its first month and incurred the...
13. A. A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,700 units):     Direct materials $172,500     Direct labor 232,400     Variable factory overhead 259,600     Fixed factory overhead 97,500 $762,000 Operating expenses:     Variable operating expenses $134,200     Fixed operating expenses 46,900 181,100 If 1,600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? a. $51,360 b. $61,735 c....
1. A business operated at 100% of capacity during its first month, with the following results:...
1. A business operated at 100% of capacity during its first month, with the following results: Sales (114 units) $638,400 Production costs (142 units):    Direct materials $85,961    Direct labor 21,948    Variable factory overhead 38,408    Fixed factory overhead 36,579 182,896 Operating expenses:    Variable operating expenses $5,576    Fixed operating expenses 4,166 9,742 The amount of operating income that would be reported on the absorption costing income statement is a. $638,258 b. $511,192 c. $515,358 d. $481,826 2. Myers Corporation has the following...
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,600 units): Direct materials $172,100 Direct labor 234,800 Variable factory overhead 267,600 Fixed factory overhead 100,300 $774,800 Operating expenses: Variable operating expenses $131,500 Fixed operating expenses 46,900 178,400 If 1,800 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? The actual price for a product was...
A business operated at 100% of capacity during its first month, with the following results: Sales...
A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units):    Direct materials $70,000    Direct labor 17,500    Variable factory overhead 31,500    Fixed factory overhead 28,000 147,000 Operating expenses:    Variable operating expenses $5,860    Fixed operating expenses 3,680 9,540 The amount of operating income that would be reported on the variable costing income statement is a.$559,860 b.$427,260 c.$458,940 d.$550,460
A business operated at 100% of capacity during its first month, with the following results: Sales...
A business operated at 100% of capacity during its first month, with the following results: Sales (106 units) $498,200 Production costs (132 units):    Direct materials $67,065    Direct labor 17,123    Variable factory overhead 29,965    Fixed factory overhead 28,539 142,692 Operating expenses:    Variable operating expenses $6,403    Fixed operating expenses 4,854 11,257 The amount of operating income that would be reported on the absorption costing income statement is a.$395,275 b.$400,129 c.$372,357 d.$498,068
A business operated at 100% of capacity during its first month and incurred the following costs:...
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,100 units): Direct materials $171,800 Direct labor 220,400 Variable factory overhead 256,100 Fixed factory overhead 102,000 $750,300 Operating expenses: Variable operating expenses $128,600 Fixed operating expenses 43,000 171,600 If 1,600 units remain unsold at the end of the month and sales total $1,143,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT