Rod EXAM # 2 ACCT. 221 3/27/2018 1) Identify the following costs as variable, fi

Question

Rod EXAM # 2 ACCT. 221 3/27/2018 1) Identify the following costs as variable, fixed or mixed. Deliver Trucks Depreciation Direct Labor Building Rent Manufacturing Machine Maintenance Sales Commission Real Estate Taxes Raw materials 2)The following data is given for mixed costs Total Mixed Cost Month Units Produced March April May June July 10000 9000 10500 8800 9500 18000 16650 18580 16200 17100 a) Compute the variable and fixed cost elements using the high-low met Mixed Costs" sheet attached. Estimate the total mixed cost if the company produces 9200 units. You are provided with the following for the month of February 203 Units sold Price per unit Total variable costs 2000 400 250000

Explanation / Answer

Q1. Expense Nature Delivery Trucks Mixed Depreciation Fixed Direct labour Variable Building rent Fixed Machine maintenance Mixed Sales commission Variable Real estate taxes Fixed Raw material Variable Q2. High Volume: Total Cost $ 18,580 and Units produced 10,500 units Low Volume: Total cost $ 16200 and Units produced 8800 units Variable cost per unit: Difference in Cost / Difference in Units (18580-16200)/ (10500-8800)= $1.40 per unit Total cost at 10500 units 18,580 Less: variable cost (10500 units @1.40) 14700 Fixed cost 3,880 Req b: Cost at 9200 units: variable cost (9200 units @ 1.40) 12880 Fixed cost 3880 Total cost 16760

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