A) Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: ( answered in2 decimal)

Required:

1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.

2. Using these estimates, calculate Mountain’s total cost for filling 400 cavities.

B) Riverside Inc. makes one model of wooden canoe. Partial information for it follows: (answered in 2 decimal)

Required:

1. Complete the table.

3. Suppose Riverside sells its canoes for $518 each. Calculate the contribution margin per canoe and the contribution margin ratio.

4. Next year Riverside expects to sell 845 canoes. Complete the contribution margin income statement for the company.

C) Riverside Inc. makes one model of wooden canoe. Partial information for it follows: (answered in 2 decimals)

Riverside sells its canoes for $460 each. Next year Riverside expects to sell 1,000 canoes.

Required:

Complete the Riverside’s contribution margin income statement for each independent scenario. Assuming each scenario is a variation of Riverside’s original data. (Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. .1234 should be entered as 12.34%) and all other answers to the nearest dollar amount.)

D) Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.64 per mile driven. Joyce has determined that if she drives 2,750 miles in a month, her total operating cost is $875. If she drives 3,850 miles in a month, her total operating cost is $1,139.

Required:

1. Using the high-low method, determine Joyce’s variable and fixed operating cost components.

2. Complete the contribution margin income statement for Joyce’s service assuming she drove 1,950 miles last month. (Assume this falls within the relevant range of operations).

D) The following information pertains to the first year of operation for Crystal Cold Coolers Inc.:

Required:

Prepare Crystal Cold’s full absorption costing income statement and variable costing income statement for the year.

Data concerning a recent period’s activity in the Assembly Department, the first processing department in a company that uses the FIFO method in its process costing, appear below:

A total of 25,000 units were completed and transferred to the next processing department during the period. Beginning work in process inventory consisted of 1,300 units and ending work in process inventory consisted of 2,800 units.

Required:

1. Compute the Assembly Department's cost of ending work in process inventory for materials, conversion, and in total for the period.

2. Compute the Assembly Department's cost of units transferred out to the next department for materials, conversion, and in total for the period.

On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month period. Revis will receive $41,600 from Green at the end of each month. If total cost savings reach a specific target, Revis will receive an additional $20,800 from Green at the end of the contract, but if total cost savings fall short, Revis will refund $20,800 to Green. Revis estimates an 80% chance that cost savings will reach the target and calculates the contract price based on the expected value of future payments to be received.

Required:
Prepare the following journal entries for Revis:
1. to 3. Prepare the journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue, assuming total cost savings exceed target, record the entry on June 30 for receipt of the bonus and assuming total cost savings fall short of target and record the entry on June 30 for payment of the penalty. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Tangshang Industries production budget from the 2^nd quarter of 2018, projected the following amounts of units to be produced:

April    1,000 units

May     1,200 units

June     1,250 units

Each unit requires 2 parts of component A and 3 parts of component B. Component A cost is $1.25 per unit and component B cost is $.80 per unit.

Each unit requires the following labor:

2 hours in the processing department

1 hour in the assembly department

Processing department labor rate is $4/hour

Assembly department labor rate is $6/hour

Variable Factory overhead is $.60 per unit

Fixed Factory overhead is $1,000 monthly

Using the information from the production budget of Tangshang Industries

1.Calculate total variable overhead cost for May 2018

2.Calculate total variable overhead cost for the quarter April - June 2018

3.Calculate total overhead cost for the quarter April - June 2018

4.Calculate total product cost for the quarter April - June 2018

Question text

Relevant Range and High-Low Method
The following selected data relate to the major cost categories experienced by Shaw Company at varying levels of operating volumes. Assuming that all operating volumes are within the relevant range, calculate the appropriate costs in each column in which blanks appear:

Beginning inventory, purchases, and sales data for portable game players are as follows:

The business maintains a perpetual inventory system, costing by the first-in, first-out method.

a. Determine the cost of the merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Feedback

Diehl Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: Manufacturing overhead $ 480,000 Selling and administrative expenses 100,000 Total $ 580,000 Distribution of resource consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 5% 85% 10% 100% Selling and administrative expenses 60% 20% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool?

Question 1 Run a regression model to estimate the cost of a building using average story height (mean centered) and total floor area (mean centered) as predictors. Using the adjusted R Square statistic, how much variation in the dependent variable can be explained by the model?

Select one: a. between 95% and 98% b. above 98 percent c. between 90% and 95% d. less than 90%

Question 2 Run a regression model to estimate the cost of a building using average story height (mean centered) and total floor area (mean centered) as predictors. Is story height a significant predictor at .05 level?

Select one: a. Yes b. No

Question 3 Run a regression model to estimate the cost of a building using average story height (mean centered) and total floor area (mean centered) as predictors. Is total area a significant predictor at .05 level?

Select one: a. Yes b. No

Question 4 Run a regression model to estimate the cost of a building using average story height (mean centered) and total floor area (mean centered) as predictors. Which of the following is wrong about the slope of total area?

Select one: a. It gives the expected change in the predicted cost for each 1 m2 change in total area, holding story height constant. b. It is a significant slope c. The expected cost of a building with a total area of 1 m2 is HK$13,965

Question 5 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Run a regression model to estimate the cost of a building using average story height (mean centered) and total floor area (mean centered) as predictors. Which of the following is wrong about the slope of story height?

Select one: a. It gives the expected change in the predicted cost for each 1 cm change in story height, holding total area constant. b. It is a significant slope c. The expected cost of a building with a story height of 0 cms is HK$3,185,038

Question 6 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Run a regression model to estimate the cost of a building using average story height (mean centered), total floor area (mean centered), and construction type (dummy coded) as predictors. Using the adjusted R Square statistic, how much variation in the dependent variable can be explained by the model?

Select one: a. between 95% and 98% b. above 98 percent c. between 90% and 95% d. less than 90%

Question 7 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Run a regression model to estimate the cost of a building using average story height (mean centered), total floor area (mean centered), and construction type (dummy coded) as predictors. Which of the following is correct about the intercept?

Select one: a. It is the expected cost of a steel building with an average story height and an average total area. b. It is the expected cost of a reinforced concrete building with an average story height and an average total area. c. It is the expected cost of a steel building with a story height of 0 cm and an average total area. d. It is the expected cost of a reinforced concrete building with an average story height and a total area of 0 m2.

Question 8 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Run a regression model to estimate the cost of a building using average story height (mean centered), total floor area (mean centered), and construction type (dummy coded) as predictors. According to the model, is it significantly more expensive (at .05 level) to build a steel building compared to a reinforced concrete building, holding everything else constant?

Select one: a. no b. yes

Question 9 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Run a regression model to estimate the cost of a building using average story height (mean centered), total floor area (mean centered), and construction type (dummy coded) as predictors. Which of the following is wrong about the slope of story height?

Select one: a. it is the expected change in the predicted building cost for a one unit change in story height, holding total area and construction type constant. b. Has a positive relationship with the cost of building c. Has a negative relationship with the cost of building

Question 10 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Run a regression model to estimate the cost of a building using average story height (mean centered), total floor area (mean centered), and construction type (dummy coded) as predictors. Which of the following is wrong about the slope of total area?

Select one: a. it is the expected change in the predicted building cost for a one unit change in total area, in holding story height and construction type constant. b. Has a positive relationship with the cost of building c. Has a negative relationship with the cost of building

Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginning of processing in that department. Data for May for the first production department follow:

Required:

1. Calculate the first production department's equivalent units of production for materials and conversion for May.

2. Compute the first production department's cost per equivalent unit for materials and conversion for May.

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May

Calculate the first production department's equivalent units of production for materials and conversion for May.

Compute the first production department's cost per equivalent unit for materials and conversion for May. (Round your answers to 2 decimal places.)

Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)

Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May. (Round your intermediate calculations to 2 decimal places.)