a) Classify each cost element as either fixed, variable, or mixed
Q: Distinguish between Period cost and Product cost? Give two examples of each cos
A: Classification of costs on the basis of functions:- 1. Product Cost 2. Period Cost
Q: Define the following concepts: a)Prime cost b) Non production cost
A: All costs incurred are categorised into production and non production cost on the basis of the…
Q: Explain difference between prime costs and conversion costs.
A: Prime cost: It is the cost which is incurred for manufacturing a product. It includes direct…
Q: Distinguish between escapable and inescapable costs. Give an example of each.
A:
Q: Understand thedifferences between directand indirect costs
A: Cost: It refers to the economic value incurred by an organization for manufacturing a product or…
Q: Distinguish between two methods of allocating common costs.
A: Cost Allocation Method: The cost allocation method is the method by which the costs to be assigned…
Q: costs and are allocated based on
A: Fixed costs allocated = 25% * Total costs 25% * $48000 = $12000
Q: Assign costs to unitsusing the weighted-averagemethod.
A: Cost: It refers to the economic value incurred by an organization for manufacturing a product or…
Q: From the following data find (A) material cost, (B) price cost, (C) direct cost,
A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Label each of the following statements as either true (“T”) or false (“F”). Relevant costs are also…
A: Relevant costs: These costs can be defined as the costs that can be avoided if we choose over option…
Q: Distinguish betweenproduct costs and periodcosts and give examplesof each.
A: Product cost: The product cost relates to the manufacturing costs such as direct material, direct…
Q: Giving examples, distinguish between Direct costs and indirect costs
A: Direct Costs are the costs that can be directly traced with the goods produced. It generally…
Q: Define the following concepts: a) Absorption costing- b) Cost behavour-
A: Costing - Absorption costing is the costing also known as Full Costing. Cost Behavior - Cost…
Q: Distinguish between a traceable cost and a common cost. Give several examples of each.
A: Fixed Expense: It is the expense incurred by a company not related to the volume of output…
Q: Question 1: Differentiate between standard cost and estimated cost.
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Describe variable costs and fixed costs and give an example of each.
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Define the following concepts: a)Prime cost b) Non production cost c)Total cost
A: The term cost refers to the monetary value of expenditure for raw materials, technology, supplies,…
Q: Giving examples, distinguish between Variable cost and Fixed costs
A: Introduction: Costs: Costs are of two types: 1 ) Fixed costs 2 ) variable costs
Q: ost classifications used for assigning costs to cost objects include: Multiple Choice Variable cost…
A: Cost Classification Determining the cost in the organisation is one of the important part in the…
Q: What two assumptions are frequently made when estimating a cost function?
A: Cost Function:Cost function represents the basic change that occurs in the total cost due to the…
Q: Distinguish between ( a ) a variable cost, ( b ) a fixed cost, and ( c ) a mixed cost.
A: Variable Cost: The cost which is not fixed is called as variable cost. This cost is directly…
Q: Explain the major reasons for allocating costs.
A: The entity allocates its cost by using a different measure. The cost that is allocated is common and…
Q: Distinguish between indirect costs and direct costs.
A: Direct Costs and Indirect Costs are two important costs. Direct costs are those costs which are…
Q: How is it possible for a cost that is traceable to a segment to become a common cost if thesegment…
A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…
Q: Define Full-cost method.
A:
Q: What are the three primary cost flow assumptions? How does the specific identification method differ…
A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…
Q: Briefly define total cost and marginal cost.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Explain how the accounting definition of an asset is related to the choice between absorption and…
A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting…
Q: Give an example of cost which is a part of unavoidable cost.
A: Unavoidable fixed costs are fixed costs that cannot be avoided by discontinuing a product line or…
Q: Name three factors that will affect the classification of a cost as direct or indirect?
A: Cost: Cost refers to the expenses incurred by the business to earn revenue from sales, in other…
Q: Can you label revenue, loss, total costs, dollars, variable cost, and fixed cost on the provided…
A: Cost Volume Profit Analysis (CVP Analysis): This analysis is helpful in determining how any type of…
Q: Identify each of these costs as fixed, variable, or mixed.
A:
Q: Describe the difference between prime costs and conversion costs?
A: Solution:- Difference between prime costs and conversion costs as follows under:-
Q: List three methods to measure cost behavior.
A:
Q: Instructions a. Define the terms variable costs, fixed costs, and mixed costs. b. Classify each cost…
A: Answer a) VARIABLE COST:- A variable cost is an expense that rises or falls in direct proportion to…
Q: Describe three criteria for evaluating cost functions and choosing cost drivers.
A: Cost Function: Cost function represents the basic change comes in the total cost due to the change…
Q: Distinguish between fixed cost and variable cost.
A: Fixed Costs: These are the costs that remain constant in total dollar amount irrespective to the…
Q: Define standard costs and explain how standard cost information is useful formanagement by…
A: Standard costs: These are the costs which a company determines as a standard to attain its…
Q: Define the following terms: differential cost, sunk cost, and opportunity cost.
A: Differential cost: Differential cost is the change in total cost due to increase or decrease in…
Q: Distinguish between traceable and common fixed costs.
A: Fixed costs are referred to as the costs that do not change with a change in the level of the…
Q: Name four approaches to estimating a cost function.
A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…
Q: (i) A cost that can be traced to a cost object is known as A. A fixed cost B. A variable cost C. A…
A: As posted multiple questions we are answering only first question kindly repost the unanswered…
Q: What does it mean that a cost is a direct, product, and variable cost?
A: The cost represents the value incurred by the corporation in making the product ready to sell in the…
a) Classify each cost element as either fixed, variable, or mixed
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- Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of 44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippys financial statements for the year ended September 30, management has asked you to review some computations made by Zippys cost accountant. Your working papers disclose the following about the companys operations: Standard costs per drum of product manufactured: Materials: Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of 1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of 94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of 816,480. Factory overhead: 768,000. Required: Calculate the following for September, using the formulas on pages 421422 and 424 (Round unit costs to the nearest whole cent and compute the materials variances for both Surge and for the drums.): 1. Materials quantity variance. 2. Materials purchase price variance. 3. Labor efficiency variance. 4. Labor rate variance.Cashion Company produces chemical mixtures for veterinary pharmaceutical companies. Its factory has four mixing lines that mix various powdered chemicals together according to specified formulas. Each line can produce up to 5,000 barrels per year. Each line has one supervisor who is paid 34,000 per year. Depreciation on equipment averages 16,000 per year. Direct materials and power cost about 4.50 per unit. Required: 1. Prepare a graph for each of these three costs: equipment depreciation, supervisors wages, and direct materials and power. Use the vertical axis for cost and the horizontal axis for units (barrels). Assume that sales range from 0 to 20,000 units. 2. Assume that the normal operating range for the company is 16,000 to 19,000 units per year. How would you classify each of the three types of cost?Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production OCosts: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials... 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20,000 Total $365.000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and…
- Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) Production Costs: 4,000 6,000 Direct Materials. $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials.. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries . Office Salaries 50,000 65,000 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20.000 Total $365.000 $477.500Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production Costs: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000…Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production Costs: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20,000 Total $365,000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and variable…
- Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production Costs: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials 25,000 37,500 Indirect Labour ............. 40,000 50,000 Depreciation . 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries ....... 30,000 30,000 .. . Advertising 45,000 45,000 Other 15,000 20,000 Total $365,000 $477.500 Required: d) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safetv in units and sales dollars. e) Recompute the break-even point in units, assuming that variable costs increased by 20% and fixed costs are reduced by $50,625. How will this impact the…Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000Production Costs:Direct Materials …………$60,000 $90,000Direct Labour …................. $80,000 $120,000Overhead:Indirect Materials…………... $25,000 $ 37,500Indirect Labour ……………. $40,000 $50,000Depreciation ………………. $20,000 $20,000Selling & Administrative Expenses:Sales Salaries ……………………$50,000 $65,000Office Salaries …………………$30,000 $30,000Advertising …………………… $ 45,000 $45,000Other ………………………………$415,000 $20,000Total…Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit 6,000 Production (# af boxes) Production Costs: 4,000 Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials.. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15.000 20,000 Total $365.000 S477.500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: ) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and variable…
- Need assistance with all workings please. Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round.The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lowerlimits of activity for the year ended December 31, 2020. Lower Limit Upper LimitProduction (# of boxes) 4,000 6,000Production Costs:Direct Materials ........................ $60,000 $90,000Direct Labour ............................ 80,000 120,000Overhead:Indirect Materials............... 25,000 37,500Indirect Labour ................ 40,000 50,000Depreciation ................... 20,000 20,000 Selling &…Han Products manufactures 40,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per uni for part S-6 is: Direct materials Direct labor Variable manufacturing overhead $ 3.30 12.00 2.70 Fixed manufacturing overhead Total cost per part 6.00 $ 24.00 An outside supplier has offered to sell 40,000 units of part S-6 each year to Han Products for $22 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $90,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer? Answer is complete but not entirely correct. Financial advantage $ 8,000 ×Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $5,900 6,200 3,500 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Adams for $2.60 each. Required X Answer is complete but not entirely correct. $ 19,300 Yes $ 24,180 X No 11,100 26,900 a. Calculate the total relevant cost. Should Adams continue to make the containers? b. Adams could lease the space it currently uses in the manufacturing process. If leasing would produce $11,800 per month, calculate the total avoidable costs. Should Adams continue to make the containers? a. Total relevant cost a. Should Adams continue to make the containers? b. Total avoidable cost b. Should Adams continue to make the containers?