Question
The following are questions that I need assistance with please provide steps and solutions 1. a-1. In a month in which the company responds to
The following are questions that I need assistance with please provide steps and solutions
1. a-1. In a month in which the company responds to 90 emergency calls, determine the estimated total cost of responding to emergency calls. a-2. In a month in which the company responds to 90 emergency calls, determine the estimated average cost of responding to emergency calls. b. Assume that in a given month, the number of emergency calls was unusually high. Would you expect the average cost of responding to emergency calls during this month to be higher or lower than in other months?
2.
The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four-month period.
Machine- Hours | Manufacturing Overhead | |||||
January | 5,500 | $ | 300,000 | |||
February | 3,200 | 224,000 | ||||
March | 4,900 | 263,800 | ||||
April | 2,600 | 180,000 | ||||
a-1. Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. (Round your answer to 2 decimal places.)
a-2. Use the high-low method to determine the fixed element of monthly overhead cost. (Round "Manufacturing overhead cost" to 2 decimal places.)
b. 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. (Round "Manufacturing overhead cost" to 2 decimal places.)
c. 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 over- or underestimated these costs? (Round "Manufacturing overhead cost" to 2 decimal places.)
3. The following is information concerning a product manufactured by Ames Brothers.
Sales price per unit | $ | 66 | |
Variable cost per unit | 43 | ||
Total fixed manufacturing and operating costs (per month) | 390,000 | ||
a. Determine the unit contribution margin.
b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.)
c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.)
4. Finley Corporation has monthly fixed costs of $70,000. It sells two products for which it has provided the following information.
Sales Price | Contribution Margin | ||||
Product 1 | $ | 15 | $ | 9 | |
Product 2 | 20 | 4 | |||
a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent for Product 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.)
b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.)
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