Solution-What are expected total costs and expected costs

What are expected total costs and expected costs per unit

Reference no: EM131110233

Homework

Directions: Answer all three questions. Please submit your work in Word or PDF formats only. You can submit an Excel file to support calculations, but please "cut and paste" your solutions into the Word or PDF file. Be sure to show how you did your calculations. Also, please be sure to include your name at the top of the first page of your file.

Question 1

a) A company estimates that its total cost( look at hint) to send out invoices, receive payments, deposit the payments, and update accounting records was $10 per sale in 2014. In 2014, there were 10,000 sales and fixed costs of $60,000. In 2015, the company expects total fixed costs and variable costs per unit to be the same as in 2014. If the company budgets 10,500 sales in 2015, what are the expected total costs and expected costs per unit for 2015?

b) Assume the same facts as in part a, except the company expects 9,500 sales in 2015. What are the expected total costs and expected costs per unit for 2015?

HINT: TOTAL COSTS = FIXED COST + VARIABLE COST. So you have to figure out Variable cost and Fixed cost from this cost.

Question 2

a) A company estimates that its total cost to acquire materials, set up machines, and produce products is $25 per unit produced in 2014. In 2014, there were 50,000 units produced and variable costs per unit produced totaled $15. In 2015, the company expects total fixed costs and variable costs per unit to be the same as in 2014. If the company budgets to produce 52,000 units in 2015, what are the expected total costs and expected costs per unit for 2015?

b) Assume the same facts as in part a, except the company expects to produce 49,000 units in 2015. What are the expected total costs and expected costs per unit for 2015?

Question 3

The Bear Company collected the following monthly information on units produced and electricity costs:

Month	Units Produced	Electricity Costs
January	50,000	$78,000
February	48,000	$74,500
March	47,000	$72,000
April	54,000	$81,000
May	58,000	$86,000
June	53,000	$79,500

Using the high-low method, prepare an estimate of electricity costs for July, assuming 53,500 units are expected to be produced in July.

Reference no: EM131110233

Questions Cloud

Train a decision tree inductive learning model : Train a decision tree inductive learning model on the data from the CSV file "finalQ3Train.csv" that contains 1500 examples and

Determine long-run proportion of days that he runs barefoot : Set up a Markov chain to help you learn about the proportion of time that he runs barefoot. Give the states and the transition probabilities. Determine the long-run proportion of days that he runs barefoot

Compute average operating assets and compute roi as percent : Compute average operating assets. Compute the margin (as a percent) and turnover ratios for last year. Compute ROI as a percent.

Create a simple alice world with text : You can reenter them into Babel Fish and cut and paste the translation from Babel Fish into Alice as needed while you develop your world,

What are expected total costs and expected costs per unit : Assume the same facts as in part a, except the company expects to produce 49,000 units in 2015. What are the expected total costs and expected costs per unit for 2015?

Predictions of how current healthcare reform policies : Predictions of how current healthcare reform policies will impact the future of healthcare

Estimates obtained from the credit and collection department : Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 15%; collections during the month following the sale, 65%; collections the second month following the sale, 20%.

Do you have effective ways of handling stress : Do you have effective ways of handling STRESS and what aspects of your studies at Excelsior College have you found especially stressful?

Multitasking computer systems : Why do so many people believe they can think about more than one thing at a time? What effect do fast, multitasking computer systems like Unix have on such beliefs? Is this healthy or unhealthy?

User Account

All Pages

What are expected total costs and expected costs per unit

Reference no: EM131110233

Reference no: EM131110233

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Measure the income of a business enterprise

Recast the income statement in contribution format

Provide cost of direct materials and overhead for three jobs

Relation of cost to financial and management accounting

Find the full costing value of ending inventory

Unique characteristics of particular company

Compute the gross profit rate for the month of february

1 hans a citizen and resident of argentina is a retired

Analyze the employee pension plan

Questionproblem 1consider you want to purchase a million

What is the current loan balance on the old loan

Manufacturing overhead is allocated to products based on

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT