An economist estimated that the cost function of a single-product firm is:

C(Q) = 70 + 25Q + 20Q² + 10Q³.

Based on this information, determine the following: I can't figure G out?

. The fixed cost of producing 10 units of output.

$ 70

b. The variable cost of producing 10 units of output.

$ 12,250

c. The total cost of producing 10 units of output.

$ 12,320

d. The average fixed cost of producing 10 units of output.

$ 7

e. The average variable cost of producing 10 units of output.

$ 1,225

f. The average total cost of producing 10 units of output.

$ 1,232

g. The marginal cost when Q = 10.

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 units of product were as follows:

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

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Salisbury Bottle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows:

At the beginning of March, Salisbury’s management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows:

a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production.

b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Different companies may have or may choose to have different cost structures for the same product. Many companies try to lower total cost regardless of output but, if it were so easy, then it would already have been done. So, consider a change in cost structure which combines a 10 percent increase in fixed cost and a sufficient decrease in marginal cost which does not change BE.

a) How large is the required decrease in marginal cost?

b) Over what range of output does this combined change increase total cost?

c) Would this change make profits more or less sensitive to an unanticipated increase in

Saudia Manufacturing Company established the following standard price and cost information:
            
Sales price   $   50   per unit
Variable manufacturing cost      32   per unit
Fixed manufacturing cost   $   100,000   total
Fixed selling and administrative cost   $   40,000   total

Saudia Company expected to produce and sell 25,000 units. Actual production and sales amounted to 26,500 units.

Required: Complete the following table
(a) Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost.
(b) Classify the variances as favorable (F) or unfavorable (U).

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and average cost. There are 36 units in ending inventory. (Do not round intermediate calculations, such as average cost per unit values. Round your answers to the nearest cent.)

Date Units purchased Cost per unit Total cost

January 1 43 $ 7.10 $ 305.30

April 1 38 6.35 241.30

June 1 53 6.10 323.30

September 1 48 6.60 316.80

Total 182 $ 1,186.70

Cost of goods sold Ending inventory

FIFO   

LIFO

Average cost $

Calculate cost of goods sold and ending inventory for Emergicare’s bandages orders using FIFO, LIFO and average cost. There are 33 units in ending inventory. (Do not round intermediate calculations, such as average cost per unit values. Round your answers to the nearest cent.)

Special Purpose EOQ Model: Price-break model

Problem information:

Annual Forecast: 12,000 units

Order processing cost: $125/order

Inventory Carrying rate: 20% per year

1. Calculate EOQ at each price-break

2. Determine Q at each price-break

3. Plug the Q value into the total cost annual cost function to determine the total cost for each order quantity

a. TAIC = RC + (R/Q)S + (Q/2)kC

4. What is the optimal order quantity?

5. What is the total annual inventory cost at the optimal order quantity?

Carolina Corporation, which uses throughput costing, began operations at the start of the current year. Planned and actual production equaled 20,000 units, and sales totaled 17,000 units at $95 per unit. Cost data for the year were as follows: Direct materials (per unit) $ 18 Conversion cost: Direct labor 225,000 Variable manufacturing overhead 335,000 Fixed manufacturing overhead 300,000 Selling and administrative costs (total) 443,000

Required:

A. Compute the company's total cost for the year.

B. How much of this cost would be held in year-end inventory under (1) absorption costing and (2) variable costing?

C. How much of the company's total cost for the year would appear on the period's income statement under (1) absorption costing and (2) variable costing?

Transferred-In Cost

Golding's finishing department had the following data for July:

Required:

1. Calculate unit costs for the following categories: transferred-in, materials, and conversion. Round your answers to the nearest cent.

2. Calculate total unit cost. Round your answer the nearest cent.
$

ABC Company has provided the following information from their records:

                                                                         Purchases                                         Sales               

                                                                 Units             Unit Cost              Units     Selling Price/Unit

Mar       1         Beginning inventory          100                  $50

             3         Purchase                             60                  $60

             4         Sales                                                                                   70                   $100

           10         Purchase                           200                  $70

           16         Sales                                                                                   80                   $110

           19         Sales                                                                                   80                   $110

           25         Sales                                                                                   50                   $110

           30         Purchase                             40                  $75

Using the inventory and sales data above, to complete the below inventory schedule under FIFO method and prepare the journal entries to record the sales on March 4. All sales are made on credit.