Urban Elite Cosmetics has used a traditional cost accounting system to apply quality-control costs uniformly to all products at a rate of 17 percent of direct-labor cost. Monthly direct-labor cost for Satin Sheen makeup is $98,000. In an attempt to more equitably distribute quality-control costs, management is considering activity-based costing. The monthly data shown in the following chart have been gathered for Satin Sheen makeup. Quantity of Drive r Activity Cost Pool Cost Driver Poo'L Rates for Satin Sheen Incoming material inspection Type oi" material $ 23.\") per type 23 types In-process inspection Number of units 8.25 per unit 33,003 units Product certification Per order 146.30 per order ".r'B orders Required: 1. Calculate the monthly.r quality-control cost to be assigned to the Satin Sheen product line under each ofthe following product- costing systems. a. Traditional system, which assigns overhead on the basis of direct-labor cost. b. Activity-based costing; 2. Does the traditional product-costing system overcost or undercost the Satin Sheen product line with respect to quality-control costs? By what amount? Complete this question by entering your answers In the tabs below. Required 1 Required 2 Does the traditional product-costing system overcast or undercost the Satin Sheen product line with respect to quality-control costs? By what amount? _:-:I After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Amount Cost Driver Sales commissions $ 769,500 Boxes of yarn sold to retail stores Catalogs 526, 220 Catalogs distributed Cost of catalog sales 189, 900 Skeins sold through catalog Credit and collection 86, 400 Number of retail orders Total selling costs $1, 572, 020 The knitting yarn is sold to retail outlets in boxes, each containing 12 skeins of yarn. The sale of partial boxes is not permitted. Commissions are paid on sales to retail outlets but not on catalog sales. The cost of catalog sales includes telephone costs and the wages of personnel who take the catalog orders. Jackson believes that the selling costs vary significantly with the size of the order. Order sizes are divided into three categories as follows: Order Size Catalog Sales Retail Sales Small 1-10 skeins 1-10 boxes Medium 11-20 skeins 11-20 boxes Large Over 20 skeins Over 20 boxes An analysis of the previous year's records produced the following statistics. Order Size Small Medium Large Total Retail sales in boxes (12 skeins per box) 3,500 63,060 190 , 000 256, 500 Catalog sales in skeins 91, 000 64, 000 56, 000 211, 000 Number of retail orders 605 3, 015 5,980 9,600 Catalogs distributed 469, 310 436, 530 146, 600 1, 052, 440 Required: 1. Prepare a schedule showing Redwood Company's total selling cost for each order size and the per-skein selling cost within each order size. (Round your intermediate calculations and unit cost per order to 2 decimal places.)Jonathan Macintosh is a highly successful Pennsylvania orchard man who has formed his own company to produce and package applesauce. Apples can be stored for several months in cold storage. so applesauce production is relatively uniform throughout the year. The recently hired controller for the rm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Pints of Applesauce Month Produced Energy Cost January 121,666 $71, 8I6 February 79,666 62, 566 March 82,666 69, 266 April 88,666 69, 756 May 166,666 76, 3I6 June 112,666 76, 359 July 136,666 71, 566 August 166,666 76, 666 September 166,666 76, 666 October 16I,666 69, 7I6 November 139,666 73, I366 December 133,666 72, 6I6 Required: 1. Use the high-Ion.r method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y: a + bX, where Ydenotes energy cost for a month and Xdenotes pints of applesauce produced. 2. Predict the energy cost for a month in which 90,000 pints of applesauce are produced. Complete this quatlon by entering your answers In the tabs below. Required 1 Required 2 Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bx, where Y denotes energy cost for a month and X denotes pints of applesauce produced. (Round coefficient of X to 2 decimal places.) -_ Exercise 6-30 High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.) Miles Traveled Month by Tour Buses Cost November 13, 050 17,300 real December 16, 100 17,600 January 19, 150 17,750 February 22, 700 18,200 March 30, 200 19, 400 April 12, 200 16,700 Required: 1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. 2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost. 3. Predict the level of maintenance cost that would be incurred during a month when 31,000 tour miles are driven. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. (Round "Variable cost per tour mile" to 3 decimal places.) Variable cost per tour mile real Fixed cost per month realExercise 6-34 Estimating Cost Behavior by Multiple Methods (Appendix) (LO 6-1, 6-2, 6-5, 6-9) Gator Beach Marts, a chain of convenience grocery stores in the Fort Lauderdale area, has store hours that fluctuate from month to month as the tourist trade in the community varies. The utility costs for one of the company's stores are listed below for the past six months. Total Hours Total Utility Month of Operation Cost January 500 $2, 820 February 600 3,200 March 700 3,600 April 450 2,700 May 400 2,350 June 350 2,200 Required: 1-a. Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form (Y = a + bX). 1-b. What is the variable utility cost per hour of operation? 3-a. Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the cost behavior for the store's utility cost. Express the cost behavior in formula form. 3-b. What is the variable utility cost per hour of operation? 4. During July, the store will be open 300 hours. Predict the store's total utility cost for July using each of the cost-estimation methods employed in requirements (1) and (3). Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 3A Req 3B Req 4 Use the high-low method to estimate the cost behavior for the store's utility costs. Express the cost behavior in formula form ( Y = a+ hx)