Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lawn Doc, Inc. incurred the following cost in the business of maintaining lawns. In May, 2,000 lawns were cut. In June, 3,000 lawns were cut.

image text in transcribed
Lawn Doc, Inc. incurred the following cost in the business of maintaining lawns. In May, 2,000 lawns were cut. In June, 3,000 lawns were cut. All lawns cut are similar in size. 2.000 3.000 Gasoline for lawnmowers Salary to owner $8,200 $5,000 $24,000 $3,000 $800 $12,300 $5,000 $36,000 $4,500 $800 $70 $70 Wages paid to lawn cutters Costs paid for fertilizer Depreciation on lawn equipment General business insurance Advertising in daily paper Gasoline for 7 trucks used Maintenance on lawn equipment Cell phone bill Twine for weed-eaters $160 $160 $30,800 $780 $99 $41,300 $900 $99 $120 $180 Using the cost information above, determine if each type of cost is a (A) fixed cost. (B) variable cost, or (C) mixed cost. Do your computations on scratch paper and then enter your answers Important to Remember: Costs that are the same in total for both volumes are fixed . Costs that are the same per lawn (per unit) regardless of the volume are variable costs. To determine the cost per unit, divide the total dollars by the volume. When it is the same for both levels of volume, it is a fixed cost. Costs that are not fixed or variable are mixed costs. These costs are not the same per unit or in total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Medical Audits In Developing Countries The Challenges And Solutions

Authors: Hussein Lesio Kidanto

1st Edition

9783639300338, 978-3639300338

More Books

Students also viewed these Accounting questions