Gin Company has the following data for the past six months for the mixed cost, cleaning...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gin Company has the following data for the past six months for the mixed cost, cleaning costs, incurred: Month Cleaning Cost Units produced January 19,500 February 19,200 March 21,200 April 43,000 May 29,200 June 42,400 Required: i) ii) $48,048 48,246 50,980 106,080 70,800 94,254 Assume Gin Company uses high-low method to analyze cleaning costs, find the cost function for Gin Company. (13 marks) Gin Company has conducted regression analysis. The R2 are 0.55 and 0.85 for the cost driver "units produced" and "labor hours" respectively. Which cost driver is more appropriate for cost estimation? Explain. (4 marks) Gin Company has the following data for the past six months for the mixed cost, cleaning costs, incurred: Month Cleaning Cost Units produced January 19,500 February 19,200 March 21,200 April 43,000 May 29,200 June 42,400 Required: i) ii) $48,048 48,246 50,980 106,080 70,800 94,254 Assume Gin Company uses high-low method to analyze cleaning costs, find the cost function for Gin Company. (13 marks) Gin Company has conducted regression analysis. The R2 are 0.55 and 0.85 for the cost driver "units produced" and "labor hours" respectively. Which cost driver is more appropriate for cost estimation? Explain. (4 marks)
Expert Answer:
Answer rating: 100% (QA)
Answer i Variable Cost per unit Highest activity cost Lowest activity cost Highest activity units L... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
The company reports the following data for the past three years Compute the allowance for bad debts as a percentage of accounts receivable and evaluate the quality of accounts receivable over the...
-
Warner Company has the following data for the past year: Actual overhead .......$470,000 Applied overhead: Work-in-process inventory ..$100,000 Finished goods inventory .. 200,000 Cost of goods sold...
-
The budget committee of Litwin Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2014. 1. Sales for May are expected to be...
-
Simplity each of the follewing ratios. f r 15 15kg:350 g 0.45:085 ( 580 ml: L121:104 m/ 40 033:063: 18
-
In the early 1980s, Brazils government, through an average inflation rate of 147 percent per year, got only 1.0 percent of output as seigniorage, while Sierra Leones government got 2.4 percent...
-
1. Identify the disease according to given points : (a) Sustained high fever (b) Weakness (c) Headache (d) Loss of appetite (1) Ascariasis (2) Amoebiasis (3) Typhoid (4) Cholera 2. Toxoids vaccines...
-
Given the Irwin-Hall distribution with pdf, \[f_{Y}(y)=\frac{1}{2(n-1) !} \sum_{k=0}^{n}(-1)^{k}\left(\begin{array}{l}n \\k\end{array} ight)(y-k)^{n-1} \operatorname{sign}(y-k)\] where the sign...
-
Cathy Carpenter, controller of the Sweet and Salty Snacks is preparing a presentation to senior executives about the performance of its four divisions. Summary data related to the four divisions for...
-
. How would a person create and claim value in leadership ability via the use of resource allocation theory and constrained utility maximization?
-
A 1600 kg car is traveling over a hill that has a radius of curvature of 25 m. The car is slowing down as it goes over the hill. It slows down at a constant rate from a speed of 25 m/s to a speed of...
-
In each of the following cases, calculate the accounting break-even and the cash break- even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations...
-
A bag contains 23 copper rings and 7 gold rings. You reach into the bag and grab 9 rings. What is the probability that at most 1 of them is a gold ring?
-
Use the circular-flow diagram to explain how an increase in the amount of money spent by households results in an increase in the number of jobs in the economy. Describe in words what the...
-
Sally Spendthrift has an established bank account at a local bank. She gives a check to a merchant for the purchase of a new stereo. Her bank returns the check to the merchant because Spendthrifts...
-
Laura Lightfingers steals a package of filet mignon priced at $19.99 from the meat counter in a supermarket. As she leaves the store, she is approached by a security guard. Lightfingers kicks and...
-
A. H. Hacker is a skilled computer operator at a business office. Through stealthful operation of his computer, he successfully obtains a list of names and addresses of a competitors customers...
-
Find all values of c so that v = (1, 2, c) and w = (1, -2, c) are orthogonal. (Enter your answers as a comma-separated list.) C = x 1.73
-
Do public and private companies follow the same set of accounting rules? Explain.
-
Consider the following note payable transactions of Concert Video Productions. 2015 May 1 Purchased equipment costing $12,000 by issuing a one-year, 3% note payable. Dec. 31 Accrued interest on the...
-
Fred White Corporation operates four bowling alleys. The business just received the October 31, 2016, bank statement from City National Bank, and the statement shows an ending balance of $885- Listed...
-
Each morning, Joel Rowe stocks the drink case at Joels Beach Hut in Myrtle Beach, South Carolina. The drink case has 100 linear feet of refrigerated drink space. Each linear foot can hold either six...
-
Explain the building blocks of accounting: ethics, principles, and assumptions.
-
On May 1, 2025, Park Flying School Ltd., a company that provides flying lessons, was started with an investment of 45,000 cash in the business. Following are the assets and liabilities of the company...
-
The historical cost basis results in: a. initially recording assets at cost and adjusting when the current value changes. b. keeping activities of an entity separate and distinct from its owner. c....
Study smarter with the SolutionInn App