Question
Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas: Grooming supplies (variable) y = $0 + $4x Direct labour
Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas:
| Grooming supplies (variable) | y | = | $0 + $4x | |
| Direct labour (variable) | y | = | $0 + $13x | |
| Overhead (mixed) | y | = | $11,220 + $1x |
Puli, the owner, has determined that direct labour is the cost driver for all three categories of costs.
(a)
Prepare a flexible budget for activity levels of 550, 600, and 680 direct labour hours. (List variable costs before fixed costs.)
| DOGGONE GROOMERS Flexible Budget | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs: | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs: | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs | $ | $ | $ | |||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs: | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs | ||||||
| Activity LevelDirect LabourDirect Labour HoursFixed CostsGrooming SuppliesOverheadTotal CostsTotal Fixed CostsTotal Variable CostsVariable Costs | $ | $ | $ | |||
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-0078025365
