question 20.2

Determine the company's monthly break-even point in sales dollars How mu Ch revenue must the company generate in the upcoming month operat Listed below are nine technical accounting term introduced in this chapter Each of the following statements may (or may not) describe one of these technical terms for each statement indicate the accounting term described or answer "None" if the statement does not recently described any of the terms. The level of sales at which revenue exactly equals costs and expenses Costs that remain unchanged despite changes in sales volume The span over which output is likely to vary and assumptions about cost behavior generally remain valid. Sales revenue less variable costs and expenses Unit sales price minus variable cost per unit The reduction in unit cost achieved from a higher amount. level of output Costs that respond to changes in sales volume by less than a proportionate amount Operating income less variable costs The following information is available regarding the total manufacturing overhead of Bursa Mf LO1 EXERCISE 20.2 Co. for a recent four-month period: Use the high-low method to determine: The variable element of manufacturing overhead costs per machine-hour. The fixed element of monthly overhead cost Bursa expects machine-hours in May to equal 5.300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs Suppose Bursa had used the cost relationships determined in part a to estimate the total manufacturing overhead expected for the months of February and March. By what amounts would Bursa have or underestimated these costs