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Cost Behavior Cover - to - Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants
Cost Behavior CovertoCover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements and that follow. Units Produced Total Lumber Cost Total Utilities Cost Total Machine Depreciation Cost shelves $ $ $ shelves shelves shelves Determine whether the costs in the table are variable, fixed, mixed, or none of these. Lumber Variable Cost Utilities Mixed Cost Depreciation Fixed Cost For each cost, determine the fixed portion of the cost, and the perunit variable cost. If there is no amount or an amount is zero, enter Recall that, for N Number of Units Produced, Total Costs Variable Cost Per Unit x N Fixed Cost. Complete the following table with your answers. Round variable portion of cost per unit answers to two decimal places. Cost Fixed Portion of Cost Variable Portion of Cost per Unit Lumber $fill in the blank bbcefaef $fill in the blank bbcefaef Utilities fill in the blank bbcefaef fill in the blank bbcefaef Depreciation fill in the blank bbcefaef fill in the blank bbcefaef Feedback Area Feedback Review the definitions for fixed, variable, and mixed costs, and the relationships between units produced and total cost for each type of cost Recall that the highlow method may be used to separate a cost into its fixed and variable components. Question Content Area HighLow Biblio Files Company is the chief competitor of CovertoCover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions through that follow. Units Produced Total Cost January units $ February March April May June From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the highlow method. Recall that Total Costs Variable Cost Per Unit x Number of Units Produced Fixed Cost. Complete the following table. Total Fixed Cost Variable Cost per Unit $fill in the blank adabfe $fill in the blank adabfe With your Total Fixed Cost and Variable Cost per Unit from the highlow method, compute the total cost for the following values of N Number of Units Produced Number of Units Produced Total Cost $fill in the blank adabfe fill in the blank adabfe fill in the blank adabfe Why does the total cost computed for units not match the data for January? a The highlow method is accurate only for months in which production is at full capacity. b The highlow method only gives accurate data when fixed costs are zero. c The highlow method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest. d The highlow method gives accurate data only for levels of production outside the relevant range. Feedback Area Feedback Review the highlow method, and use the smallest and largest levels of production in your computation. Question Content Area Contribution Margin Review the contribution margin income statements for CovertoCover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold units during the year. CovertoCover Company Biblio Files Company Contribution margin ratio percent fill in the blank caff fill in the blank caff Unit contribution margin $fill in the blank caff $fill in the blank caff Breakeven sales units fill in the blank caff fill in the blank caff Breakeven sales dollars $fill in the blank caff $fill in the blank caff Feedback Area Feedback Review the definitions of contribution margin ratio and unit contribution margin. Also review the formulas for breakeven in terms of units sold and sales dollars. Question Content Area Income Statement CovertoCover CovertoCover Company Contribution Margin Income Statement For the Year Ended December Y Sales $ Variable costs: Manufacturing expense $ Selling expense Administrative expense Contribution margin $ Fixed costs: Manufacturing expense $ Selling expense Administrative expense PLEASE HELP WITH EQUATIONS FOR ALL ANSWERS
Cost Behavior
CovertoCover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements and that follow.
Units
Produced Total
Lumber
Cost Total
Utilities
Cost Total Machine
Depreciation
Cost
shelves $ $ $
shelves
shelves
shelves
Determine whether the costs in the table are variable, fixed, mixed, or none of these.
Lumber
Variable Cost
Utilities
Mixed Cost
Depreciation
Fixed Cost
For each cost, determine the fixed portion of the cost, and the perunit variable cost. If there is no amount or an amount is zero, enter Recall that, for N Number of Units Produced, Total Costs Variable Cost Per Unit x N Fixed Cost. Complete the following table with your answers. Round variable portion of cost per unit answers to two decimal places.
Cost Fixed Portion
of Cost Variable Portion
of Cost per Unit
Lumber $fill in the blank bbcefaef
$fill in the blank bbcefaef
Utilities fill in the blank bbcefaef
fill in the blank bbcefaef
Depreciation fill in the blank bbcefaef
fill in the blank bbcefaef
Feedback Area
Feedback
Review the definitions for fixed, variable, and mixed costs, and the relationships between units produced and total cost for each type of cost Recall that the highlow method may be used to separate a cost into its fixed and variable components.
Question Content Area
HighLow
Biblio Files Company is the chief competitor of CovertoCover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data, answer questions through that follow.
Units Produced Total Cost
January units $
February
March
April
May
June
From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the highlow method. Recall that Total Costs Variable Cost Per Unit x Number of Units Produced Fixed Cost. Complete the following table.
Total Fixed Cost Variable Cost per Unit
$fill in the blank adabfe
$fill in the blank adabfe
With your Total Fixed Cost and Variable Cost per Unit from the highlow method, compute the total cost for the following values of N Number of Units Produced
Number of
Units Produced
Total Cost
$fill in the blank adabfe
fill in the blank adabfe
fill in the blank adabfe
Why does the total cost computed for units not match the data for January?
a The highlow method is accurate only for months in which production is at full capacity.
b The highlow method only gives accurate data when fixed costs are zero.
c The highlow method gives a formula for the estimated total cost and may not match levels of production other than the highest and lowest.
d The highlow method gives accurate data only for levels of production outside the relevant range.
Feedback Area
Feedback
Review the highlow method, and use the smallest and largest levels of production in your computation.
Question Content Area
Contribution Margin
Review the contribution margin income statements for CovertoCover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold units during the year.
CovertoCover
Company Biblio Files
Company
Contribution margin ratio percent fill in the blank caff
fill in the blank caff
Unit contribution margin $fill in the blank caff
$fill in the blank caff
Breakeven sales units fill in the blank caff
fill in the blank caff
Breakeven sales dollars $fill in the blank caff
$fill in the blank caff
Feedback Area
Feedback
Review the definitions of contribution margin ratio and unit contribution margin. Also review the formulas for breakeven in terms of units sold and sales dollars.
Question Content Area
Income Statement CovertoCover
CovertoCover Company
Contribution Margin Income Statement
For the Year Ended December Y
Sales $
Variable costs:
Manufacturing expense $
Selling expense
Administrative expense
Contribution margin $
Fixed costs:
Manufacturing expense $
Selling expense
Administrative expense
PLEASE HELP WITH EQUATIONS FOR ALL ANSWERS
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