Question.3235 - Instructions: Complete the problems below. This assignment can be completed in either: Microsoft Excel, Word, or hand-written and scanned in PDF format. I prefer Microsoft Excel or Word but will not dock points for PDF format. SHOW YOUR WORK AND GET PARTIAL CREDIT FOR WRONG ANSWERS! PART A. For 1-8, use the information below for two levels of production. Classify each cost as variable, fixed, or mixed.5,000 Units 10,000 Units 1. Direct Materials $ 50,000 $ 100,000 2. Direct Labor 10,000 20,000 3. Indirect Labor 8,000 10,000 4. Indirect Materials 500 1,000 5. Utilities 2,000 3,000 6. Rent 8,000 8,000 7. Depreciation 10,000 10,000 8. Factory Overhead 12,000 16,000 PART B. For 9-12, use the data below for the fourth quarter to answer the questions. Units Produced Total Cost October 6,300 $ 24,300 November 8,300 28,800 December 7,500 27,000 9. Compute the variable cost element using the high-low method. 10. Compute the fixed cost element using the high-low method. 11. Estimate the total cost if the company produces 10,000 units. 12. How many units would the company have produced if the total cost was $37,125? PART C. For 13, use the information below to complete. Our company sells each unit produced for $500. The variable costs per unit is $200 and fixed costs total $120,000. 13. Compute the break-even point in units using a mathematical equation. 14. Calculate the break-even point in dollars. PART D. For 14-20, use the information below to complete. Our company makes picture frames that sell for $25 each. Next year, fixed costs are expected to total $275,000 and variable costs are expected to be $10 per unit. 15. Compute the break-even point in units using a mathematical equation. 16. Calculate the contribution margin per unit. 17. Calculate the contribution margin ratio. 18. Compute the break-even point in dollars using the contribution margin ratio. 19. Compute the margin of safety percentage assuming actual sales are $600,000. 20. Compute the sales required in dollars to earn net income of $200,000 using the mathematical equation.
Answer Below:
Instructions xxxxxxxx the xxxxxxxx below xxxx assignment xxx be xxxxxxxxx in xxxxxx Microsoft xxxxx Word xx hand-written xxx scanned xx PDF xxxxxx I xxxxxx Microsoft xxxxx or xxxx but xxxx not xxxx points xxx PDF xxxxxx SHOW xxxx WORK xxx GET xxxxxxx CREDIT xxx WRONG xxxxxxx PART x For x use xxx information xxxxx for xxx levels xx production xxxxxxxx each xxxx as xxxxxxxx fixed xx mixed xxxxx Units xxxxxx Materials xxxxxxxx cost xxxxxx Labor xxxxxxxx cost xxxxxxxx Labor xxxxx cost xxxxxxxx Materials xxxxxxxx cost xxxxxxxxx Mixed xxxx Rent xxxxx Cost xxxxxxxxxxxx Fixed xxxx Factory xxxxxxxx Mixed xxxx PART x For x use xxx data xxxxx for xxx fourth xxxxxxx to xxxxxx the xxxxxxxxx Units xxxxxxxx Total xxxx October xxxxxxxx December xxxxxxx the xxxxxxxx cost xxxxxxx using xxx high-low xxxxxx High xxx low xxxxxx of xxxxxxxx are xx October xxx November xxxxxxxxxx in xxxxx produced xx ndash xxx Difference xx Total xxxx is xxxxx Therefore xxxxxxxx cost xxx unit xx Compute xxx fixed xxxx element xxxxx the xxxxxxxx method xxxxx cost xxxxxxxxx Fixed xxxxxxxxxxxx costs xxxx low xxxxxxxx the xxxxx cost xx the xxxxxxx produces xxxxx Total xxxx to xxxxxxx units xxx many xxxxx would xxx company xxxx produced xx the xxxxx cost xxx Variable xxxx - xxxxx Produced xxxxx PART x For xxx the xxxxxxxxxxx below xx complete xxx company xxxxx each xxxx produced xxx The xxxxxxxx cost xxx unit xx and xxxxx costs xxxxx Compute xxx break-even xxxxx in xxxxx using x mathematical xxxxxxxx Sales xxxxxxxx cost xxxxx cost xxx IncomeLet x is xxxxx volume xx units xxxxxxxxx x x x x units xxxxxxxxx point xx units xx Calculate xxx break-even xxxxx in xxxxxxx PART x For x use xxx information xxxxx to xxxxxxxx Our xxxxxxx makes xxxxxxx frames xxxx sell xxx each xxxx year xxxxx costs xxx expected xx total xxx variable xxxxx are xxxxxxxx to xx per xxxx Compute xxx break-even xxxxx in xxxxx using x mathematical xxxxxxxx Sales xxxxxxxx cost xxxxx cost xxx Income xxx x xx sales xxxxxx in xxxxx Therefore x x x X xxxxx Breakeven xxxxx in xxxxx is xxxxxxxxx the xxxxxxxxxxxx margin xxx unit xxxxxxxxxxxx margin xxx unit xxxxx per xxxx ndash xxxxxxxx cost xxx unit x Calculate xxx contribution xxxxxx ratio xxxxxxxxxxxx margin xxxxx Contribution xxxxxx per xxxx Sales xxx unit xxxxxxx the xxxxxxxxxx point xx dollars xxxxx the xxxxxxxxxxxx margin xxxxx Fixed xxxx Contribution xxxxxx ratio xxxxxxxxx point xx dollars xxxxxxx the xxxxxx of xxxxxx percentage xxxxxxxx actual xxxxx are xxxxxx of xxxxxx Actual xxxxx ndash xxxxx even xxxxx Actual xxxxx - xxxxxxx the xxxxx required xx dollars xx earn xxx income xx using xxx mathematical xxxxxxxx Required xxxx Variable xxxx fixed xxxx Net xxxxxx x x x x X xxxxx Required xxxxx unitsMore Articles From Accounting
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