Jenkins Frames Company, which manufactures ornate frames for original art work, began operations in January 2018....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jenkins Frames Company, which manufactures ornate frames for original art work, began operations in January 2018. Bruce Preston, the owner, asks for your assistance. He believes that he needs to better understand the cost of the frames for pricing purposes. You have collected the following data concern- ing actual production over the past year: Month January February March April May June July August September October November December Number of Frames Produced 1,600 7,200 3,920 1,200 3,200 2,600 2,200 3,600 4,560 5,880 6,560 800 Total Cost $42,000. 65,000 59,000 37,200 58,000 54,000 51,200 62,000 64,000 63,000 64,000 33,000 b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (3) Sketch a line between the high and low points on your graph. (4) Using the high-low method, estimate the total cost to produce 4,000 units. Jenkins Frames Company, which manufactures ornate frames for original art work, began operations in January 2018. Bruce Preston, the owner, asks for your assistance. He believes that he needs to better understand the cost of the frames for pricing purposes. You have collected the following data concern- ing actual production over the past year: Month January February March April May June July August September October November December Number of Frames Produced 1,600 7,200 3,920 1,200 3,200 2,600 2,200 3,600 4,560 5,880 6,560 800 Total Cost $42,000. 65,000 59,000 37,200 58,000 54,000 51,200 62,000 64,000 63,000 64,000 33,000 b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (3) Sketch a line between the high and low points on your graph. (4) Using the high-low method, estimate the total cost to produce 4,000 units.
Expert Answer:
Answer rating: 100% (QA)
1 No of Frame January 1600 February 7200 March 3920 April May June Varlable 1200 3200 2... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
Posted Date:
Students also viewed these accounting questions
-
Jenkins Frames Company, which manufactures ornate frames for original art work, began operations in January 2018. Bruce Preston, the owner, asks for your assistance. He believes that he needs to...
-
Mikhail Frames Company, which manufactures ornate frames for original art work, began operations in January 2014. Edwin Hyde, the owner, asks for your assistance. He believes that he needs to better...
-
Vicardo Frames Company, which manufactures ornate frames for original art work, began operations in January 2011. Sam Waits, the owner, asks for your assistance. He believes that he needs to better...
-
Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company's current assets, current liabilities, and sales over the last five years...
-
1. A steel ball has a radius of 1.54 cm at 35C. Find its change in volume when the temperature is increased to 84.5C. 2. Find the increase in volume of 44.8 L of acetone when it is heated from 37.0C...
-
Member ABC is supported by a pin and bracket at B and by an inextensible cord attached at A and C and passing over a frictionless pulley at D. The tension may be assumed to be the same in portions AD...
-
Describe some business and economic conditions that might make the lower-of-cost- or-market rule more likely to be used.
-
Consider the data in Table P-3 where X = weekly advertising expenditures and Y = weekly sales. a. Does a significant relationship exist between advertising expenditures and sales? b. State the...
-
Find the component form of u + v given the lengths of u and v and the angles that u and v make with the positive x-axis. ||u|| = 5, = 6 0 u 0 = 5 ||v|| = 1, u + v = (5.968, .609)
-
A newly issued bond pays its coupons once annually. Its coupon rate is 5%, its maturity is 20 years, and its yield to maturity is 8%. a. Find the holding-period return for a 1-year investment period...
-
The following is the trial balance of Baba Ltd as at 31 December 2014. Debit Credit GHS000 GHS000 450,000,000 ordinary shares (issued at GHS 1 per share) 450,000 150,000,000 10% cumulative preference...
-
How can value engineering be used to reduce cost and improve the value of a product or service?
-
Gradually raise Social Security's full retirement age to 70. The age at which workers can become eligible for full Social Security benefits depends on when they were born. For people born before...
-
Travel cost The cost of a trip that is L miles long, driving a car that gets m miles per gallon, with gas costs of $p/gal is C = Lp/m dollars. Suppose you plan a trip of L = 1500 mi in a car that...
-
John Lewis (1940-2020) was a leader in the civil rights movement. He participated in the Nashville sit-ins and the Freedom Rides and was the chairman of the Student Nonviolent Coordinating Committee...
-
Write a Lexical Analyzer in Python that recognizes keywords, delimiters, primitive constants and operations, identifiers, and numbers using the following syntax definitions: Keywords if, then, else,...
-
As a financial analyst, you are required to value a company which has expected earnings before interest and taxes (EBIT)of RM26 million every year beginning in one year. The depreciation is expected...
-
In muscle tissue, the ratio of phosphorylase a to phosphorylase b determines the rate of conversion of glycogen to glucose 1phosphate. Classify how each event affects the rate of glycogen breakdown...
-
Kemp Tables, Inc. (KTI) makes picnic tables of 2 4 planks of treated pine. It sells the tables to large retail discount stores such as Walmart. After reviewing the following data generated by KTI's...
-
The following information pertains to Job 712 that Nantou Manufacturing Company completed during January 2018. Materials and labor costs for the job were $24,500 and $19,000, respectively. Applied...
-
Doris Hunt is considering whether to install a drink machine at the gas station she owns. Doris is convinced that providing a drink machine at the station would increase customer convenience....
-
Natural Language Processing (NLP) applications can learn how to communicate verbally or in written form using language that look and sounds very much like the way humans communicate. What are the six...
-
Work automation is the practice of replacing human workers with technology (i.e., software programs or robots). Describe the impact that work automation is likely to have on business and society in...
-
1. HSBC Adopts Machine Learning Artificial Intelligence to Fight Money Laundering Why would a bank like HSBC find it difficult to identify transactions and account fluctuations that should be clear...
Study smarter with the SolutionInn App