Solution-Determine estimated cost of operating purchasing

Determine estimated cost of operating purchasing department

Assignment Help Managerial Accounting

Reference no: EM133088755

Question - The following information pertains to Seven Dwarf Mining Equipment Limited for 2019 and 2020:

	Cost of Operating the Purchasing Department	Number of Purchase Orders Issued
Fourth quarter of 2019	$130,000	2,500
First quarter of 2020	80,000	1,000
Second quarter of 2020	110,000	1,500
Third quarter of 2020	115,000	2,000
Fourth quarter of 2020	140,000	3,000

Required - Using the high-low method, determine the following:

1. Determine the variable cost per purchase order.

2. Determine the fixed cost of operating the purchasing department for one quarter.

3. Determine the estimated cost of operating the purchasing department in first quarter of 2021 assuming that 2,800 purchase orders will be issued.

Reference no: EM133088755

Questions Cloud

Websites involving small businesses : You must select two websites of the same topic or genre. In other words, you can select two banking websites, two shopping websites, two health provider website

Calculate the exchange gain or loss : Calculate the exchange gain or loss on both the accounts payable and the forward contract to be 4 reported for the year ended December 31, 2019

Invest in the group technology : Jay Deep is the VP of Operations and he can choose between three different production processes. The demand-level forecasts are classified into four levels: poo

Differences between action research and traditional research : Identify similarities and differences between action research and traditional research. Explain why businesses might choose to implement an action research appr

Determine estimated cost of operating purchasing department : Determine the estimated cost of operating the purchasing department in first quarter of 2021 assuming that 2,800 purchase orders will be issued

Detailed analysis into the marketing environment : This should be presented as an article. You will be expected to draw upon academic sources as well as research on your chosen organization.

Make on your actionable steps for improvement : Make on your actionable steps for improvement. Looking at the social competence learning involved in this course, concisely describe, using course terminology,

Why is a business model important : Why is a business model important? How are business models influenced by internal and external factors?

Explain the udaap violation : RMK Financial Corporation is a California-based mortgage lenderwhich also does business under the name Majestic Home Loans. RMKmailed print advertisements to mo

User Account

All Pages

Determine estimated cost of operating purchasing department

Reference no: EM133088755

Reference no: EM133088755

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT