Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.

1. Determine whether the costs in the table are variable, fixed, mixed, or none of these.

2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N= Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers.

Cost Fixed Portion of Cost Variable Portion of Cost (per Unit)

Lumber $ $

Utilities $ $

Depreciation $ $

Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions (1) through (3) that follow.

1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the High-Low Method. Recall that Total Costs = (Variable Cost Per Unit x Units Produced) + Fixed Cost. Complete the following table.

2. With your Total Fixed Cost and Variable Cost per Unit from the High-Low Method, compute the total cost for the following values of N (Number of Units Produced).

3. Why does the total cost computed for 4,360 units not match the data for January in the table at the top of this panel?

The High-Low method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest.

The High-Low method only gives accurate data when fixed costs are zero.

The High-Low method gives accurate data only for levels of production outside the relevant range.

The High-Low method is accurate only for months in which production is at full capacity.

Which of the following best states why why in the short run a firm may decide to continue to produce, even with economic losses? Select one:

a. Price is greater than average variable cost but less tha average total cost

. b. Total revenue is greater than total variable cost but less than total cost.

c. All of the above are reasons for continuing production.

d. One of the above is incorrect. e. Economic losses areless than fixed cost.

Wrap up question 1: You hold a “Top” piece of charged tape near an uncharged soda can. Describe the behavior of the tape. Would the behavior be different if you used a “Bottom” piece of tape instead? Explain.

Wrap up question 2: Suppose there exists a third type of charge in addition to the two types we associate with glass and plastic. Call this third type X charge. What experiment(s) could you use to test whether an object has X charge? State clearly how the outcome(s) of the experiment(s) would be interpreted.

Wrap up question 3: A positively charged electroscope has separated leaves. Describe what will happen if you bring a negatively charged rod near, but not touching, the top of the electroscope.

The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub.

​a) For the location of the proposed new central​ hub, the coordinates should be​ near:

x​ = ____ ​(round your response to two decimal​ places).

y​ = _____ ​(round your response to two decimal​ places).

​b) If the shipments from city A double​, for the location of the proposed new central​ hub, the coordinates should be​ near:

x​ = ___ ​(round your response to two decimal​ places).

y​ = ___ ​(round your response to two decimal​ places).

Problem 18-2A Scatter diagram and cost behavior estimation LO P1

[The following information applies to the questions displayed below.]

Alden Co.’s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.

Problem 18-2A Part 2

2. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)

In the past, Best Car has used direct labor hours as a basis of allocating overhead. Now, that they are looking to experiment with ABC, they have identified the following activities, activity cost pools and cost drivers in its manufacturing overhead as shown in the ABC schedule. The cost driver quantity per product line is 80% of total cost driver quantity for product A; and 20% for product B.

Required:

1) Complete the schedule below

2) Compute overhead for model A

3) Compute overhead for model B

Profit and Loss Worksheet - (Figure %’s to 2 decimal places)

Cost of sales

Open and use the chart below for the Cost of Sales Quiz. 7 questions A – G

Cost of sales ÷ sales = cost of sale %

Sales × cost of sale % = cost of sales

Cost of sales ÷ Cost % = Sales

A.

B.

C.

D.

E.

F.

G.

The following information is available for a company’s maintenance cost over the last seven months.

Using the high-low method, estimate both the fixed and variable components of its maintenance cost.
  

The following information is available for a company’s maintenance cost over the last seven months.

Using the high-low method, estimate both the fixed and variable components of its maintenance cost.

High- Low method calculation of variable cost per maintenance hour

__________________ ____________________ ____________ _______________ __________0

_________________ ____________________ _______________

Total cost at the high point $_____________________

Variable costs at the high point:   

Volume at the high point: ________________________

Variable cost per maintenance hour ____________________

Total variable costs at the high point __________________________

Total fixed costs ________________________

Total cost at the low point _________________

Variable costs at the low point: _________________

Volume at the low point: _______________

Variable cost per maintenance hour ____________

Total variable costs at the low point

Total fixed costs