Business, 02.03.2021 02:10 star296

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be:

Answers: 1

Show answers

Answers

Answer from: crystalxolotp4q3la

For making 10,000 units

Type A cost = 40,000

Type B Cost = 90,000

Type C Cost = 25,000

Explanation:

Given - Shum Manufacturing, which uses the high-low method, makes a

product called Kwan. The company incurs three different cost

types (A, B, and C) and has a relevant range of operation between

2,500 units and 10,000 units per month. Per-unit costs at two

different activity levels for each cost type are presented below.

Type A Type B Type C Total

5,000 units $4 $9 $4 $17

7,500 units $4 $6 $3 $13

To find - If Shum produces 10,000 units, the total cost would be ?

Proof -

As we know that

Total cost = Variable cost per unit × Units + Fixed Cost

Now,

As per the question ,

Highest Activity unit = 7,500 units

Lowest Activity unit = 5,000 units

Now,

Variable cost per unit = Change in cost / Change in activity unit

= ( Highest Activity cost - Lowest Activity cost ) / ( Highest Activity unit - Lowest Activity unit )

Type A Type B Type C

Highest Activity Cost 30,000 45,000 22,500

Lowest Activity Cost 20,000 45,000 20,000

Variable Cost Per unit 4 0 1

Fixed Cost 0 90,000 15,000

Now,

Statement Showing Total Cost for 10,000 units

Particulars Type A Type B Type C

Variable Cost 40,000 0 10,000

Fixed Cost 0 90,000 15,000

Total 40,000 90,000 25,000

∴ we get

For making 10,000 units

Type A cost = 40,000

Type B Cost = 90,000

Type C Cost = 25,000

Answer from: Quest

answer; i believe the answer you are searching for is (minimum payment)

Answer from: Quest

answer; sensory adaptation;

Another question on Business

Business, 21.06.2019 18:30

2. high-glow currently produces 1,000 bicycles per month. the following per unit data apply for sales to regular customers: direct materials $50 direct manufacturing labor 5 variable manufacturing overhead 14 fixed manufacturing overhead 10 total manufacturing costs $79 the plant is experiencing demand shortage and is considering reducing production to 800 bicycles. what is the per unit cost of producing 800 bicycles? a) $79 per unit b) $81.50 per unit c) $74 per unit d) $69 per unit

Answers: 2

Answer

Business, 21.06.2019 21:30

Problem 2-18 job-order costing for a service company [lo2-1, lo2-2, lo2-3]speedy auto repairs uses a job-order costing system. the company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 10,000fixed overhead cost $ 90,000variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate.2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 600direct labor cost $ 180direct labor-hours used 2 compute mr. wilkes' total job cost. 3. if speedy establishes its selling prices using a markup percentage of 30% of its total job cost, then how much would it have charged mr. wilkes?

Answers: 1

Answer

Business, 22.06.2019 07:10

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.

Answers: 3

Answer

Business, 23.06.2019 06:50

Jaden has a degree in marketing. she would like to run her department. she is going back to school to get a degree in: a. web designer b. database administrator c. information security d. computer user support

Answers: 1

Answer

You know the right answer?

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs...

Questions