Fixed- and variable-cost pools

Assignment Help Accounting Basics

Reference no: EM13153813

The city of Cedarcrest signed a lease for a photocopy machine at $2,000 per month and $.02 per copy.

Operating costs for toner, paper, operator salary, and so on are all variable at $.03 per copy.

Departments had projected a need for 50,000 copies a month. The Public Works Department predicted its usage at 18,000 copies a month. It made 21,000 copies in August.

1. Suppose one predetermined rate per copy was used to allocate all photocopy costs. What rate would be used and how much cost would be allocated to the Public Works Department in August?

2. Suppose fixed- and variable-cost pools were allocated separately. Specify how each pool should be allocated. Compute the cost allocated to the Public Works Department in August.

3. Which method, the one in number 1 or the one in number 2, do you prefer? Explain.

Reference no: EM13153813

Questions Cloud

Maximization of company operating margin : Determine the product mix for statues that allows maximization of the company's operating margin.

What is the null hypothesis and expected value : A sociologist wanted to determine whether there was a difference in the amount of time children aged 5-7 spent watching tv. what is the null hypothesis? Find the expected value.

Outline a micro-economic reform issue : Outline a micro-economic reform issue that is relevant to the Australian economy market and how successful do you think these reform measures were and say why referring to some data or research that has been performed.

What was the perrcentage of h2o2 in the sample : If 43.2 ml of 0.105 M KMnO4 were required to reach the endpoint of a 14.8g bleach sample, what was the perrcentage of H2O2 in the sample?

Fixed- and variable-cost pools : Suppose fixed- and variable-cost pools were allocated separately. Specify how each pool should be allocated. Compute the cost allocated to the Public Works Department in August.

What is the variance of this portfolio? : a. If your portfolio is invested 40% each in A and C, and 20% in B, what is the portfolio expected return? b. What is the variance of this portfolio? c. What is the standard deviation of this portfolio?

Journal entry necessary to record the depreciation expense : (a) Prepare the journal entry necessary to record the depreciation expense on the building in 2011. (b) Compute depreciation expense on the machinery for 2011.

At what ph will an solution of mn2+ begin to precipitate : At what pH will an aqueous solution of 0.210 M Mn2+ begin to precipitate as Mn(OH)2 at 25 °C? The Ksp for Mn(OH)2 is 1.9 x 10-13

State null-alternative hypotheses-average number of hours : State the null and alternative hypotheses to determine if the average number of hours until spoilage begins differs for the preservatives A and B?

User Account

All Pages