Description of this paper

cost accounting

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solution


Question

To estimate the monthly maintenance cost for the maintenance department in a hospital, the following monthly costs are available;MONTHLY EXPENSE;COSTS;Supervisor Salary Expense;$4,000;Depreciation Expense ? Maintenance Equipment;$6,000;Repairs Expense ? Maintenance Equipment;$6,000;Supplies Expense;$9,000;Wages Expense ? Maintenance Workers;$13,000;The Supervisor Salary Expense and the Depreciation Expense are both fixed costs. The remaining expenses are variable costs. There are 1,000 patient days in a month, which is the cost driver for maintenance costs. Estimate the cost function where Y is the monthly maintenance cost and X is the variable cost per patient day.;A.;Y = $10,000 + $28X;B.;Y = $10,000 + $28,000X;C.;Y = $38,000 + $28,000X;D.;Y = $10 + $28X;Presented below is the production data for six months of the year showing the mixed costs incurred by Famous Company.;MONTH;COST;UNITS;July;$9,500;4,000;August;$10,000;5,100;September;$12,200;6,800;October;$14,000;10,000;November;$13,100;8,000;December;$11,400;6,200;Famous Company uses the high-low method to analyze mixed costs. The predicted total cost at an operating level of 8,000 units is __________.;A.;$14,000;B.;$12,500;C.;$12,000;D.;$13,100;Elegant Motel's cost function is given as;Y = $60,000 + $8.25X;Where;Y = annual custodial cost;X = number of guest-days of occupancy;In the current year, Elegant Motel has 7,500 guests days. In the next year, Elegant Motel expects an occupancy level of 9,000 guest days. All costs next year will remain in the same relevant range as the current year. What is the expected fixed custodial cost for next year?;A.;$95,000;B.;$72,000;C.;$60,000;D.;$6.67;Infinity Company uses activity-based costing, and normally produces 1,000,000 units per month. At this level of production, the costs per unit are as follows;Direct materials used;$15;Direct labor;$4;Variable indirect production;$3;Setup costs;$2;For 1,000,000 units, 500 setups are required at a cost of $4,000 per setup. The company has received a special order for 125,000 units at $30 per unit. The company has excess capacity. The company estimates that 3 setups will be required for the special order. What is the cost of the special order?;A.;$2,762,000;B.;$3,012,000;C.;$3,000,000;D.;$2,750,000;Jabber Company has budgeted sales of $36,000 with the following budgeted costs;Direct materials;$7,100;Direct labor;$6,600;Variable factory overhead;$3,200;Fixed factory overhead;$5,300;Variable selling and administrative costs;$2.400;Fixed selling and administrative costs;$2,500;What is the average target markup percentage for setting prices as a percentage of total variable costs?;A.;87%;B.;46%;C.;none of the above;D.;62%

 

Paper#81762 | Written in 18-Jul-2015

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