BUSINESS COLLEGE

Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year:Month Number of Appointments Total Cost
January 325 5,900
February 375 6,200
March 300 5,650
April 350 5,450
May 275 5,550
June 450 6,250

Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.)

Answers

Answer 1
Answer:

Answer:

C =  6.5Q + 3,762.5

Explanation:

High-low method:

We subtract the high from the low:

\left[\begin{array}{ccc}High&375&6200\nLow&275&5550\nDiference&100&650\n\end{array}\right]

The difference tell us that 100 untis generate 650 additional cost

So we can calcualte the variable cost:

cost 650 / Unis 100 = variable cost 6.5

Now on low or high we solve for fixed cost:

cost = 6.5 x 375 + fixed cost

Total Cost 6200

Variable 2437.5

Fixed Cost 3762.5

cost = 6.5 x 275 + fixed cost

Total Cost 5550

Variable 1787.5

Fixed Cost 3762.5

the formula will be:

C =  6.5Q + 3,762.5

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Activity Cost Pool Total Cost Total Activity Activity Rate Machine setups $ 20,000 200 setups $ 100 per setup Special processing $ 150,000 10,000 MHs $ 15 per machine-hour General factory $ 200,000 20,000 direct labour-hours $ 10 per direct labour-hour Total overhead costs $ 370,000 What is the total overhead cost assigned to Product A, if Product A used 100 setups, no special processing and 10,000 direct labor-hours? $10,000 $1,000 $110,000 $100,000

Answers

Answer:

total overhead cost = $110,000

so correct option is c.  $110,000

Explanation:

given data

used = 100 setups

direct labor-hours = 1000

to find out

What is the total overhead cost assigned to Product A

solution

we get total overhead cost that is express as

total overhead cost = [ $100 per machine setup × 100 setups ] + [ $15 per machine-hours × 0 special processing ] + [ 10 per direct labor-hour × 10,000 direct labor-hours ]    

so

total overhead cost = $10,000 + $0 + $100,000

total overhead cost = $110,000

so correct option is c.  $110,000

A company used straight-line depreciation for an item of equipment that cost $15,550, had a salvage value of $3,400 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,555 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life:A. $3,400.
B. $3,060.
C. $1,215.
D. $5,798.
E. $2,640.

Answers

The answer would be B

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Answers

By using the FIFO Method the Closing inventory is $3,519. The cost of goods sold is $18,786. The sales revenue is $27,279, and the gross profit is $8,493.

Closing  Inventory:

Ending inventory = 69 units * $51 (unit cost from the last purchase) = $3,519

Cost of Goods Sold:

The cost of goods sold will be the cost of the inventory that was sold during the year. Since the inventory is allocated based on the FIFO method, we start by using the units from the beginning inventory, then from the April 7 purchase, and finally from the July 16 purchase.

a. From the beginning inventory (53 units):

Cost of goods sold = 53 units * $45 (unit cost from the beginning inventory) = $2,385

b. From the April 7 purchase (133 units):

Cost of goods sold = 133 units * $47 (unit cost from the April 7 purchase) = $6,251

c. From the July 16 purchase (247 units):

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Sales Revenue:

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Gross Profit:

Gross profit = Sales revenue - Cost of goods sold

Gross profit = $27,279 - $18,786 = $8,493

Therefore, using the FIFO method, the ending inventory is $3,519, the cost of goods sold is $18,786, the sales revenue is $27,279, and the gross profit is $8,493.

Learn more about the FIFO method here:

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Anner Manufacturing is developing an activity-based costing system to improve overhead cost allocation. One of the first steps in developing the system is to classify the costs of performing production activities into activity cost pools. Classify the cost of each activity in the following list into unit-, batch-, product-, or facility-level cost pools:

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4. Supplies

Answers

Answer:

When you collect all the costs related to performing a particular activity (e.g. producing a product), you have created an activity cost pool. This helps to get an accurate estimate of the cost of that activity or task and is mostly applied in activity-based costing system. Different activities may require different cost pools.

The activities below are thus classified accordingly:

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2. Plant Security - Facility Level Cost Pool

3. Sales Commission - Product Cost Pool. (This is incurred in selling the product and so must be pre-built into the price of the product.

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Cheers!

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Answers

Answer:

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Explanation:

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Answers

Answer:

around 16k

Explanation:
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