Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hii would like some steps and explanation on solving these questions, thank you $12 4 8 EAS. DO 2.2 Rose Company has a relevant range
hii would like some steps and explanation on solving these questions, thank you
$12 4 8 EAS. DO 2.2 Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Average cost per Unit Direct materials Direct labor 10 Indirect materials 2 Fixed manufacturing overhead Variable manufacturing overhead 3 Fixed selling and administrative expenses Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit? B. If 18,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 11,000 units are produced, what are the total variable costs? E. IF 19,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred? Illustration High Low Method Using the maintenance cost data from Regent Airlines shown in Figure 2.32, we will examine how this method works in practice. Month Activity Level Maintenance (Flight Hours) Costs January 21,000 $84,000 February 23,000 90,000 March 14,000 70,500 April 17,000 75,000 May 10,000 64,500 June 19,000 78,000 Figure 2.32 Monthly Maintenance Cost and Activity Detail for Regent Airlines. (attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license) EB10. LO 2.3 This cost data from Hickory Furniture is for the year 2017. Month Number of Factory Chairs Produced Utility Expenses January 425 $1,659 February 510 1,964 March 625 2,406 April 725 2,791 May 685 2,637 June 575 2,214 July 510 1.964 August 810 3,119 September 700 2,695 October 650 2,503 November 875 3,369 December 680 2,618 A. Using the high-low method, express the factory utility expenses as an equation where x represents number of chairs produced. B. Predict the utility costs if 900 chairs are produced. C. Predict the utility costs if 750 chairs are produced. D. Using Excel, create a scatter graph of the cost data and explain the relationship between number of chairs processed and utility expenses. Cost Classification -we have learned many different ways to classify costs so far. Let's help Beatriz Company categorize their costs by marking the appropriate boxes below for each one. Note -a cost may belong in multiple categories. Cost Behavior Product Cost Period Cost Additional Cost Variable Fixed Mixed DM DL MOH Selling Admin. Prime Conversion 1 Wages to assembly workers 2 Direct materials used 3 Advertising costs 4 Property taxes on factory 5 Office supplies used Utilities for factory 7 Sales commission 8 Depreciation on office equip. 9 Utilities for office 10 Salary of production supervisor 11 Delivery cost to customer 12 Quality inspectors 13 Depreciation on factory equip. 14 Salary of office manager 1s Wages to factory janitor Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started