Assume that this level of activity is within relevant range

Assignment Help Financial Accounting
Reference no: EM131221953

Erkkila Inc. reports that at an activity level of 6,200 machine-hours in a month, its total variable inspection cost is $425,630 and its total fixed inspection cost is $170,885. What would be the average fixed inspection cost per unit at an activity level of 6,500 machine-hours in a month? Assume that this level of activity is within the relevant range. $26.29 $96.21 $27.56 $41.09

Reference no: EM131221953

Questions Cloud

How much interest expense will be recognized under IFRS : The Evermaster Co. issues at par a $100,000 8% bond on Jan. 1, 2010 which matures after 5 years. Bond issue costs are $7721.73 . The bond pays interest on July 1 and Jan 1. How much interest expense will be recognized under IFRS for the six month per..
Design an efficient incremental update algorithm : The sampling cube was proposed for multidimensional analysis of sampling data (e.g., survey data). In many real applications, sampling data can be of high dimensionality (e.g., it is not unusual to have more than 50 dimensions in a survey data set..
Explain how does lifo subtract inflation from inventory cost : How does LIFO subtract inflation from inventory costs? Explain how the cash flow of $174,400 in this example was computed. Explain why this amount may not be correct.
Discount is amortized in the first year on the bonds term : A company issues a 10 year 7.5% $1 million dollar bond which pays interest semi-annually. The issue price is $966,024.18 Using the effective interest method, how much of the discount is amortized in the first year on the bonds term?
Assume that this level of activity is within relevant range : Erkkila Inc. reports that at an activity level of 6,200 machine-hours in a month, its total variable inspection cost is $425,630 and its total fixed inspection cost is $170,885. What would be the average fixed inspection cost per unit at an activity ..
Variable and absorption costing : During its first year, Walnut, Inc., showed an $36 per-unit profit under absorption costing but would have reported a total profit $32,000 less under variable costing. If production exceeded sales by 500 units and an average contribution margin of 62..
Cost-volume profit analysis : Hailstorm Company sells a single product for $22 per unit. Variable costs are $14 per unit and fixed costs are $65,000 at an operating level of 7,000 to 12,000 units. What is Hailstorm Company's break-even point in units? How many units must be sold ..
Discuss the concepts of strategic capabilities : "Outline and discuss the concepts of strategic capabilities, core competencies and strategic competitive advantage and how they relate. In your discussion, consider how CEOs utilise these concepts in the strategic management process to build and s..
Find out which countries have joined the euro area recently : Find out which countries have joined the euro area recently or are likely to join soon. Why are these countries joining while others in the European Union are still left out?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the price of the bill

What problems would confront a mutual fund trying to create an index fund tied to an equally weighted index of a broad stock market?

  Calculate each ratio using information from balance sheet

Calculate each ratio using the information from the balance sheet and income statement. Write a 2-3-page paper that reports your findings. Apply APA standards to citation of sources.

  Would you expect company to have high dividend payout ratio

Armcor Inc. is in a rapidly growing technological industry. Would you expect the company to have a high or low dividend payout ratio?

  Consultant for local landscape supply company

You are working as a consultant for a local landscape supply company. One of the possibilities that has consistently come up in conversation with the owners is making your own mulch instead of continuing to buy mulch in bulk from the distributer. Pre..

  Pure water products produces two types of water filters

Pure Water Products produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-filter that only purifies water meant for drinking. Calculate the maximum amount the compa..

  Compute NPV of tax savings

Company X suffered a $350,000 NOL in 2014. The company will carryback this NOL two years (2012 net income = $60,000 and 2013 net income = $110,000) and carryforward the remaining NOL to 2016, a year in which the company expects it's net income to be ..

  Post december adjusting entry to appropriate ledger accounts

Prepare the necessary adjusting entries for December. Post the December adjusting entries to the appropriate ledger accounts. Complete the 10-column worksheet for the year ended December 31.

  Cash flows from operating activities using indirect method

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

  A breakdown in cost centre format of the budget

A breakdown in cost centre format of the budget and a cost based risk assessment of the tender budget, including where the risk allocation would be made.

  Prepare the entries for the issuance

A $200,000, 4-year bond paying interest of 10% payable semiannually is issued on January 1, 19X1, at 104. Prepare the entries for the issuance, the interest and amortization for the first year, and there payment at maturity.

  Compute the cost of civilian and military versions of model

Compute the cost of civilian and military versions of Model KV10 using both direct labor dollars and machine hours as alternative allocation bases. Explain why Pelton Instruments may decide to use direct labor as an overhead allocation base.

  Recording journal entries and preparation of balance

recording journal entries and preparation of balance sheet.the post-closing trial balances of two proprietorships on

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd