Variable cost: Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost. Fixed cost: Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation , etc. Mixed cost: Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced. Requirement 1 To identify: The type of cost and the cost per unit.

Question

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Answer 1

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

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Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-1,900 units, and monthly production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Suppose it sells each birdbath for $24. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units.

Write a linear cost function equation for each of the following conditions. Use y for estimated costsand X for activity of the cost driver.a. Direct materials cost is $2.70 per pound b. Total cost is fixed at $800 per month regardless of the number of units produced. c. Auto rental has a fixed fee of $90.00 per day plus $1.75 per mile driven. d. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usagecosts for each day the machinery is in operation.

Bright Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $90 per unit, of which $50 is product cost and $40 is selling and administrative expenses. In addition, the total cost of $90 is made up of $55 variable cost and $35 fixed cost. The desired profit is $20 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole number.

Answer 2

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

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Answer 3

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Expert Solution & Answer

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See solution

Answer 5

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Answer 6

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

Answer 7

Chapter 5, Problem 2E

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 1

To identify:

The type of cost and the cost per unit.

Answer 8

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

Answer 9

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 2

The total fixed cost per month and variable cost per unit

Answer 10

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

Answer 11

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 3

The linear cost equation.

Answer 12

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Answer 13

To determine

Concept introduction:

Variable cost:

Variable costs are the cost that vary with the level of production and are directly related to the production volume. Example: Cloth (i.e., the raw material) used for producing shirt is a variable cost.

Fixed cost:

Fixed costs are the cost which remain fixed over time or production volume and do not vary with the production level. Example include salaries and wages of officers, depreciation, etc.

Mixed cost:

Mixed costs are the costs that have some part of cost fixed and some is variable. Example include some production cost which remain fixed at $800 and also increases by R$2 for every unit produced.

Requirement 4

The cost at given units of production

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 5 - Define each of the following terms variable cost,...Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - Describe the three methods used to estimate cost...Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Solution Summary: The author identifies the different types of costs and per unit cost. Variable costs vary with the level of production and are directly related to the production volume.

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