This is Management Accounting class

HIS IS AN INDIVIDUAL ASSIGNMENT, PLEASE USE THE ACCOMPANYING EXCEL FILE IN COMPLETING THIS ASSIGNMENT.ONLY THE WORD DOCUMENT MUST BE SUBMITTED FOR CREDIT.

Module 1.3

Trinkets & Things Company (TTC) is developing a cost formula for its packing activity.Discussion with workers in the packing department has revealed that packing costs may be associated with the number of customer orders, the order weight in pounds, and the relative fragility of the items (more fragile items must be specially wrapped).Data for the past 20 months have been gathered: More info attached.

\fSCATTERGRAPHS - ALL DATA SCROLL DOWN TO SEE ALL THREE GRAPHS Packing Cost given No. of Orders $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 0 20,000 40,000 60,000 80,000 100,000 120,000 Packing Cost given Order Weight $300,000 $200,000 $100,000 $- 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Packaging Cost given No. of Fragile Item $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- 0 2,000 4,000 6,000 8,000 10,000 12,000 ATA E GRAPHS en No. of Orders 00 packing costs Linear (packing costs) 100,000 120,000 140,000 160,000 en Order Weight Packing Cost given Order Weight Linear (Packing Cost given Order Weight) 250,000 300,000 350,000 400,000 450,000 No. of Fragile Items 00 Packaging Cost given No. of Fragile Items Linear (Packaging Cost given No. of Fragile Items) 10,000 12,000 14,000 16,000 HIGH / LOW METHOD - "NUMBER OF ORDERS" - Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Totals $ $ Packing Costs 45,000 58,000 39,000 35,600 90,000 126,000 90,600 63,000 79,000 155,000 450,000 640,000 41,000 54,000 58,000 58,090 80,110 123,000 108,000 76,000 2,469,400 No. of Orders 11,200 14,000 10,500 9,000 21,000 31,000 20,000 15,000 16,000 40,000 113,500 150,000 10,000 14,000 15,000 14,500 18,000 30,000 27,000 18,000 597,700 Variable Cost per Order: Order Weight 24,640 31,220 18,000 19,350 46,200 64,000 60,000 40,000 59,000 88,000 249,700 390,000 23,000 29,400 30,000 31,900 50,000 75,000 63,450 41,400 1,434,260 Number of Fragile Items 1,120 1,400 1,000 850 4,000 5,500 1,800 750 1,500 2,500 11,800 14,000 900 890 1,500 1,340 3,000 2,000 1,900 1,430 59,180 PART 4 Cost Estimate given activity data: Cost High Low Difference ALL DATA No. of Orders Variable Cost per order No. of Orders Weight of Orders No of Fragile Items Fixed Cost: Cost Estimate Using High Activity Using Low Activity Cost Equation: Y= Estimated Activity 26,000 Can only use this 57,000 900