41. A.

1. Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations.

   	Cost	Machine Hours
   January	$26,400	9,700
   February	38,000	18,400
   March	28,000	12,200
   April	30,100	14,800

   a. $13,467

   b. $10,774

   c. $43,094

   d. $22,894

41. B.

1. The manufacturing cost of Calico Industries for three months of the year are provided below:

   	Total Cost	Production (units)
   April	$110,800	277,300
   May	88,800	161,500
   June	101,700	232,200

   Using the high-low method, the variable cost per unit and the total fixed costs are

   a. $0.34 per unit and $29,057

   b. $3.42 per unit and $5,811

   c. $1.90 per unit and $5,811

   d. $0.19 per unit and $58,113

41. C.

1. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of businessSeptember, October, and Novemberare $249,000, $306,000, and $406,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

   The cash collections expected in September from accounts receivable are estimated to be

   a. $249,000

   b. $174,300

   c. $298,800

   d. $139,440