Using the high-low method of cost estimation determine total fixed costs are. Select the correct answer. $84,545 | | | $41,432 | | | $43,113 | | | $22,011 | | 5. Given the following cost and activity observations for Johnson Company's utilities, use the high-low method to calculate Johnson's fixed costs per month. | Cost | Machine Hours | April | $61,255 | 1,189 | May | $82,714 | 1,806 | June | $97,496 | 2,474 | Using the high-low method, determine the variable cost per unit, and the total fixed costs.
b. Calculate the cost of items completed during November. c. Calculate the cost of ending Work in Process. a. Material: Cost in beginning work in process$ 30,000 Cost during the period$ 421,990 $ 451,900 Conversion cost: Cost in beginning work in process $13,000 cost during the period $394,880 = $407,880 Equivalent units in ending work in process: material (4,000 units * .9) = 3,600 conversion cost (4,000 * .5) = 2,000 Cost per equivalent unit of material: $451,990 / (44,000 + 3,600) =$9.49 Cost per equivalent unit for conversion cost: $407,880 / (44,000 + 2000)= $8.87 =$18.26 b. cost of items completed in November: 45,000 units * $18.36 = $826,200 c. Cost of ending work in process: material cost (3,600 * $9.49) = $34,164 conversion cost (2,000 * $8.87) = $17,740 total cost of ending work in process =
The standard deviation is 932 and minimum and maximum credit balances are 1864 and 5678 respectively. Relationships III The four more significant relationships from this sample are: Income and Credit Balance, Income and Household Size along with Years and Credit Balance. The bivariate relationship between income and credit balance is reflected in the below scatter gram /scatterplot that reflects a clear and definite linear positive relationship/correlation between income and credit balance, indicating that the higher the income, the higher the credit balance will be and vice versa. The below scatterplot indicates that there is no definite relationship between Income and household size. The points on the scatter plot seems random and do not reflect a clear pattern indicating that there is no correlation among the variables Income and Size The below scatter plot indicates that there is no relationship between years and credit balance, the scatter plot does not reflect a clear pattern indicating that there is there is correlation among the variables Years and Credit
of Table 1 operations Cost Incurred (USD) Ref of cost given in column: 4 Unit Cost (USD) 1 2 3 4 5 6 A Handling of cartons B Shipping of cartons C Desktop delivery 2000 dly 440000 Para 3(c) 220/ dly D Set up of manual E Enter individual F Validate EDI orders 8000 orders 40000 Para 3(d) G General & Selling in Warehouse by freight 80000 cartons 75000 cartons 16000 orders 150000 lines 600000 Para 3(d) 4160000 Para 3(a) 52/ 450000 Para 3(b) 6/ carton Carton 160000 Para 3(d) order lines of each order (i) (ii) (iii) 10/order 4/line 5 / order Expense USD 42500000 of Annual Sales 200000 Para 3(e) 0.47% of sales 3. Explanation of working out the cost shown in column 5 of table above is given below. (a) Handling of cartons in warehouse:-This has two components. Cost of personnel used in warehouse operations and cost of warehouse excluding personnel expense. (i) Cost of Warehouse excluding personnel is USD 2000000 (ii) Only 90% of warehouse personnel are used for handling of cartons in warehouse.
Employee’s salary rang 3. Base tax amount 4. Percent of excess 5. Total tax due Input: Salary range Bass tax Percent of excess salary Output: Display total tax due Dedign: Main Module Declare Employee’s salary rang As Real Declare Base tax amount As Real Declare Percentage of excess As Real Declare excess over the minimum salary rang As Real Declare total tax due As Real Call Input Data Module Call Perform Calculations Module Call Output Result Module End Main Module Input Data Module Write “What is Employee’s salary rang?” Input EmployeeSalaryRang Write “What is the base tax amount?”
What would be the impact on monthly sales cost, and income? Regular Selling Price Impact: Price $4,350 Quantity $3,000 Revenue $13,050,000 Variable Manufacturing Costs ($5,385,000) Variable Marketing Costs ($825,000) Contribution Margin $6,840,000 *Fixed Manufacturing Costs ($1,980,000) *Fixed Marketing Costs ($2,310,000) Income $2,550,000 Using the regular selling price Income = Revenues – Total costs = $13,050,000 - $10,500,000 = $2,550,000 * Continue to the next page New Selling Price Impact: Price $3,850 Quantity $3,500 Revenue $13,475,000 Variable Manufacturing Costs ($6,282,500) Variable Marketing Costs ($962,500) Contribution Margin $6,230,000 Fixed Manufacturing Costs ($1,980,000) Fixed Marketing Costs ($2,310,000) Income $1,940,000 2) After price reduction, income = $13,475,000 - $11,535,000 =
Case question 1 During the recent years, Robertson Tool has been underperforming. Poor profit and sales performance reflects potential profits to be achieved from an acquisition with Robertson. At Robertson, key line items such as sales income, cost of sales and administrative expenses are much likely to be improved. Despite the fact that Robertson’s distribution system has a great range with wholesalers selling to over 15,000 retailers in 137 countries, the company’s sales growth (2%) falls behind the industrial sales growth by 4 per cent (6%). Poor sales performance and relatively high cost of sales have contributed to the profit margins to slip to one third of other hand tool manufacturers.
APV vs. WACC Problem Given the following information, answer questions 1 and 2 below. Company and market data: Rf = 4% Rm = 10% βu = 0.9 D/V (target) = 40% RD = 4% Tc = 30% Project CFs: I0 = 1000, CF1 = 300, CF2 = 400, CF3 = 500 1) Calculate the project’s value using WACC 2) Calculate the project’s value using APV -Oops, we can’t until we know the financing (debt) pattern over time. (a) OK, assume the project is financed with 60% debt which is paid off in three equal, annual installments. (b) Now assume instead of (a) that the debt is rebalanced to be consistent with the firm’s target debt ratio (i.e. D/V = 40%).