Phillips Company manufactures air-conditioning units for commercial buldings and has noticed considerable variation in shipping expenses...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Phillips Company manufactures air-conditioning units for commercial buldings and has noticed considerable variation in shipping expenses from month to month as per the data below: Total Shipping Expense $ 1,640 $ 2,540 $ 1,900 $1,206 $ 1,77e $ 2,16e $ 2,976 Units Month Shipped January 4 February 4 March 5 April May 3. June July Required: 1. Which two months should be used if Phillips wants to estimate the behaviour of shipping expenses using the high-low method? Month Shipping Expanse High activity level Low activity level 2.976 1,206 2. Using the high-low method, what is the variable cost per unit to ship air conditioners? 3. What is the fixed cost of shipping air conditioners? Fixed cost Phillips Company manufactures air-conditioning units for commercial buldings and has noticed considerable variation in shipping expenses from month to month as per the data below: Total Shipping Expense $ 1,640 $ 2,540 $ 1,900 $1,206 $ 1,77e $ 2,16e $ 2,976 Units Month Shipped January 4 February 4 March 5 April May 3. June July Required: 1. Which two months should be used if Phillips wants to estimate the behaviour of shipping expenses using the high-low method? Month Shipping Expanse High activity level Low activity level 2.976 1,206 2. Using the high-low method, what is the variable cost per unit to ship air conditioners? 3. What is the fixed cost of shipping air conditioners? Fixed cost
Expert Answer:
Answer rating: 100% (QA)
Answer Step by Step Explanation Solution Reg 1 ShipbingExPense 29 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259275814
11th canadian edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
Students also viewed these accounting questions
-
Using the high low method 1 Estimate the variable cost per wedding 2 Compute the total fixed cost per month 3 Write out the equation for the cost structure of Something New explain each variable 4...
-
QUESTION 1 Suppose that the data from a student opinion poll in which they rated the instructional use of a computing facility in courses in English, Geology and Chemistry are Course English Geology...
-
What is the variable cost ratio? The contribution margin ratio? How are the two ratios related?
-
The supplies account had a beginning balance of $1,523. Supplies purchased during the period totaled $4,928. At the end of the period before adjustment, $382 of supplies were hand. Prepare the...
-
Are banking and commercefinancial and nonfinancial firmson a collision course for the future? What challenges do companies like Wal-Mart pose for small community banks? For the largest financial...
-
Consider the following potential investment, which has the same risk as the firms other projects: TimeCash Flow 0 ...................................-$95,000 1...
-
Part One: Backflush Costing Urban Fit Inc. uses backflush costing to account for production costs of its clothing. During June, the company produced 45,000 units and sold 40,000 units. The standard...
-
Based on Pauls and Ceils enthusiasm for prototyping and what you know about Pyramids needs, would you support construction of a prototype? Why or why not? Formulate your decision and response in a...
-
Secondary sources such as credential verification from another facility, copies of a credential verification, or confirmation from a source that verified the credential should only be used if primary...
-
Many of a bank's customers use its automated banking machine (ABM). During the early evening hours in the summer months, customers arrive at the ABM at the rate of one every other minute (assume...
-
I can buy a new advanced machine for $300,000, which will reduce my manufacturing cost by $30,000 per year in perpetuity (the savings is net of any up-keep required for the machine); or I can buy a...
-
You have been given the task of Auditing your Company s client files. How would you check whether each of the Disclosure Documents has been recorded and stored in accordance with the organisation s...
-
You purchased 100 shares of ABC on June 6, 2022, for $10 per share. You sold your shares on November 20, 2023, for $16 per share. The stock paid dividends of $2 per share during the holding period....
-
You are asked to prepare a comparative analysis chart and recommend for the procurement of a 4 WD vehicle based on the information given below: 1 ) Supplier A submitted proposal of TOYOTA vehicle...
-
Mr. Sands works at Southwest Medical Doctors, LLP (SWD), where he is employed as an emergency room physician. Mrs. Riley brought her son to SWD for emergency medical treatment. Despite Mr. Sands best...
-
Does the company use accounting software for bookkeeping? If so , which software and to what extent? If not, how does it record its accounting transactions and would your company benefit from using...
-
Required information Comprehensive Problem 13-83 (LO 13-1, LO 13-2, LO 13-3, LO 13-4) (Algo) [The following information applies to the questions displayed below.] XYZ is a calendar-year corporation...
-
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
-
Quick Supply distributes office supplies to small to medium sized offices throughout the Region of Waterloo, Ontario. Quick Supply sets its prices by marking up its cost of goods sold by 5%. For...
-
Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: The company is in the process of preparing a budget for May and...
-
Piccadilly Hospital has purchased new lab equipment for $200,000. The equipment is expected to last for three years and to provide cash inflows as follows: Required Assuming that the equipment will...
-
Consider estimation of the tail probability \(\mu=\mathbb{P}[X \geqslant \gamma]\) of some random variable \(X\), where \(\gamma\) is large. The crude Monte Carlo estimator of \(\mu\) is \[...
-
Let \(X\) and \(Y\) be random variables (not necessarily independent) and suppose we wish to estimate the expected difference \(\mu=\mathbb{E}[X-Y]=\mathbb{E} X-\mathbb{E} Y\). (a) Show that if \(X\)...
-
One of the test cases in [70] involves the minimization of the Hougen function. Implement a cross-entropy and a simulated annealing algorithm to carry out this optimization task.
Study smarter with the SolutionInn App