Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Customer Support Department at Wadsworth Supply is analyzing the costs of its services. A cost analyst has collected monthly data on the three main

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Customer Support Department at Wadsworth Supply is analyzing the costs of its services. A cost analyst has collected monthly data on the three main functions of the department and the total costs for the last year, which follow. The cost analyst also has identified the Customer Support Department costs for each of the three main functions. Any costs not assigned to one of the functions is considered general administration cost. The costs for the last year (in thousands) follow: Required: a-1. What is the cost per unit for special reports completed? B-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for transactions processed? b. Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing business using the account analysis approach? - 49 special reports - 2,500 customer accounts maintained a.2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for transactions processed? b. Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing business using the account analysis approach? - 40 special reports - 2,500 customer accounts maintained - 55,000 transactions processed Complete this question by entering your answers in the tabs below. a-1. What is the cost per unit for special reports completed? a-2. What is the cost per unit for customer accounts maintained? a-3. What is the cost per unit for transactions processed? Note: Round your answer to 2 decimal places. b. Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing business using the account analysis approach? - 40 special reports - 2,500 customer accounts maintained - 55,000 transactions processed Complete this question by entering your answers in the tabs below. Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing business using the account analysis approach? - 40 special reports. - 2,500 customer accounts maintained. - 55,000 transactions processed. Note: Round "Unit cost" to 2 decimal places. Enter your final answer in whole dollars rounded to nearest whole number. Exercise 5-34 (Algo) Methods of Estimating Costs: High-Low (LO 5-1, 2) Kirby Fasteners supplies the olectronics industry with accessories for cases, disc enclosures, and so on. Below are the costs and volumes for the past six months at its Plant number 6 : Required: a. Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. b. Kirby analysts forecast a production level of 13,000 units in July. Based on the resutts from requirement (a), what would be the estimated production costs in July? Complete this question by entering your answers in the tabs below. Use the high-low method to estimate the monthly foxed cost of production and the variable cost of production per unit. Hote: Hound "Varable cost' answer to 2 decimal glaces. Exercise 5-34 (Algo) Methods of Estimating Costs: High-Low (LO 5-1, 2) Kirby Fasteners supplies the electronics industry with accessories for cases, disc enclosures, and so on. Below are the costs and volumes for the past six months at its Plant number 6 : Required: a. Use the high-low method to estimate the monthly fixed cost of production and the variable cost of production per unit. b. Kirby analysts forecast a production level of 13,000 units in July. Based on the results from requirement (a), what would be the estimated production costs in July? Complete this question by entering your answers in the tabs below. Kirby analysts forecast a production level of 13,000 units in July. Based on the results from requirement (a), what would be the estimated production costs in July? Note: Round "Variable cost" to 2 decimal places

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

Managerial Accounting For Decision Making

Authors: Seohee Park

1st Edition

B08HCQCN2G

More Books

Students also viewed these Accounting questions

Question

Contrast CRT and LCD display monitors.

Answered: 1 week ago