Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canada Croon Co is based in Collingwood, Ontario. They produce recordings of owl and other bird calls that are sold around the world. The cost

Canada Croon Co is based in Collingwood, Ontario. They produce recordings of owl and other bird calls that are sold around the world. The cost driver is the number of recordings made. Zoology students on summer job programs form the majority of the direct labour pool and are paid on an hourly basis. Other office workers are salaried.

Canada Croon Co has been tracking its utility costs including heat, hydro and water and has found that the costs are represented by the following formula:

Utility costs = $20,000 + $2.00 X

where X is the number of recordings made.Last year the company made 6,000 recordings.Actual utility costs for the year were as expected.

Use the above information to answer all of the following questions.

What was the total utility cost for last year?

What was the total fixed utility cost for last year?

What was the total variable utility cost for last year?

What was the utility cost per unit manufactured last year?

What was the fixed utility cost per unit last year?

What was the variable utility cost per unit last year?

What would the total utility cost be if NO units were made this year because the factory was closed all year due to a pandemic?

What would the total fixed utility cost be if NO units were made this year due to a pandemic?

What would the total variable utility cost be if NO units were made this year due to a pandemic?

How many units would be manufactured this year if the factory was closed due to a pandemic?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Managers Using Microsoft Excel

Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat

7th Edition

978-0133061819, 133061817, 978-0133130805

Students also viewed these Accounting questions

Question

How would you handle this situation?

Answered: 1 week ago