1–1 What are the three major types of product costs in a manufacturing company?
1–2 Define the following: (a) direct materials, (b) indirect materials, (c) direct labor,
(d) indirect labor, and (e) manufacturing overhead.
1–3 Explain the difference between a product cost and a period cost.
1–4 Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost.
In: Accounting
|
Q |
TFC |
TVC |
TC |
|
0 |
10 |
0 |
10 |
|
1 |
10 |
8 |
18 |
|
2 |
10 |
14 |
24 |
|
3 |
10 |
18 |
28 |
|
4 |
10 |
24 |
34 |
|
5 |
10 |
32 |
42 |
|
6 |
10 |
43 |
53 |
|
7 |
10 |
58 |
68 |
In: Economics
INSTRUCTIONS FOR TABLE 1 and Two Graphs-21 points
1) Calculate the Total Cost (TC) for each level of output. (3 points)
2) Calculate the Average Fixed Cost (AFC) for each level of output. (3 points)
3) Calculate the Average Variable Cost (AVC) for each level of output. (3 points)
4) Calculate the Average Total Cost (ATC) for each level of output. (3 points)
5) Calculate the Marginal Cost (MC) for each level of output. (3 points)
Using the data from Table 1 draw two graphs:
Draw a graph showing the Total Fixed Cost, Total Variable Cost, and Total Cost curves. (3 points)
Draw a graph showing the Average Fixed Cost, Average Variable Cost, and Average Total Cost curves and Marginal Cost curve. (3 points)
TABLE 1
(1) (2) (3) (4) (5) (6) (7) (8)
Total Total Total Total Average Average Average Marginal
Product Fixed Variable Cost Fixed Variable Total Cost
Cost Cost Cost Cost Cost
(Q) (TFC) (TVC) (TC) (AFC) (AVC) (ATC) (MC)
0 $100 0 $______ ______
1 100 90 ______ ______ ______ ______ ______
2 100 170 ______ ______ ______ ______ ______
3 100 240 ______ ______ ______ ______ ______
4 100 300 ______ ______ ______ ______ ______
5 100 370 ______ ______ ______ ______ ______
6 100 450 ______ ______ ______ ______ ______
7 100 540 ______ ______ ______ ______ ______
8 100 650 ______ ______ ______ ______ ______
9 100 780 ______ ______ ______ ______ ______
10 100 930 ______ ______ ______ ______ ______
In: Economics
Please explained the difference for the following: Target costing, Differential cost, Relevant cost, Sunk cost and what is the important qualitative factor to consider regarding a special order? I get confused differentiating each of these. Please explain thoroughly. Thanks
In: Accounting
a) Define and compare the following types of cost:
i. Sunk cost versus incremental cost
ii. Fixed cost versus variable cost
iii. Incremental cost versus marginal cost
iv. Opportunity cost versus out-of-pocket cost
b) Point out which costs in the preceding question are considered “relevant” and which are considered “irrelevant” to a business decision. Explain why.
In: Economics
Fixed cost are constant on both the total cost and per unit cost basis
| True | |
| False |
In: Accounting
Given:
Verizon
Total cost = $23 billion
Opportunity cost of capital = 10%
Annual cost = $2.3 billion
Expected demand = q = 2,100,000 – 6P
AT&T
Total cost = $4.6 billion
Opportunity cost of capital = 10%
Annual cost = $460 million
Expected demand = q = 425,000 – 60P
1. Calculate the expected annual profit that Verizon will earn if they price at service at $30/month, $60/month or $100/month. At which price do they maximize profit?
2. Calculate the expected annual profit that AT&T will earn if they price at service at $30/month, $60/month or $100/month. At which price do they maximize profit
In: Economics
What are the similarities and differences between prime cost, product cost and period cost. b) What are the similarities and differences between fixed costs, variable costs.
In: Accounting
| Homework: Cost Behavior and Cost Prediction | |||
| Oct | Nov | ||
| Unit Sales | 4,000 | 6,000 | |
| Cost of Food Sold | $ 2,000 | $ 3,000 | |
| Depreciation | 500 | 500 | |
| Supplies | 500 | 750 | |
| Wages and Salaries | 5,000 | 5,500 | |
| Utilities | 1,400 | 1,500 | |
| Rent | 4,000 | 4,000 | |
| Total | $ 13,400 | $ 15,250 | |
| What is the Unit Variable Cost and Fixed Costs? | |||
| Predict the Average and Total Costs for | 7000 | units | |
In: Accounting
Cost of Production Report: Average Cost Method
Use the average cost method with the following data:
| Work in process, January 1, 7,000 units, 10% completed | $45,080 |
| Materials added during January from Weaving Department, 132,300 units | 828,198 |
| Direct labor for January | 213,267 |
| Factory overhead for January | 167,967 |
| Goods finished during January (includes goods in process, January 1), 129,500 units | — |
| Work in process, January 31, 9,800 units, 70% completed | — |
Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. If required, round your cost per equivalent unit answer to two decimal places.
| Dalton Carpet Company | ||
| Cost of Production Report-Cutting Department | ||
| For the Month Ended January 31 | ||
| Unit Information | ||
| Units charged to production: | ||
| Inventory in process, January 1 | ||
| Received from Weaving Department | ||
| Total units accounted for by the Cutting Department | ||
| Units to be assigned costs: | ||
| Whole Units | Equivalent Units of Production | |
| Transferred to finished goods in January | ||
| Inventory in process, January 31 | ||
| Total units to be assigned costs | ||
| Cost Information | ||
| Costs per equivalent unit: | ||
| Costs | ||
| Total costs for January in Cutting Department | $ | |
| Total equivalent units | ||
| Cost per equivalent unit | $ | |
| Costs assigned to production: | ||
| Inventory in process, January 1 | $ | |
| Costs incurred in January | ||
| Total costs accounted for by the Cutting Department | $ | |
| Costs allocated to completed and partially completed units: | ||
| Transferred to finished goods in January | $ | |
| Inventory in process, January 31 | ||
| Total costs assigned by the Cutting Department | $ | |
In: Accounting