Question: Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 7,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below.

Type A Type B Type C Total
5,000 units $ 16 $ 45 $ 16 $ 77
6,500 units 16 30 15 61

If Shum produces 7,000 units, the total cost would be:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Identify the primary characteristics of each form of legal business organization.

Q:

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 3,100 units...

Q:

TB MC Qu. 4-36 Bratton Corporation had... Bratton Corporation had 12,900 units of work In process on April 1. During April, 23,600 units were completed and as of April 30, 5,430 units remained In...

Q:

TB MC Qu. 6-98 Shum Manufacturing, which uses the high-low method, makes... Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost...

Q:

TB MC Qu. 6-97 Shum Manufacturing, which uses the high-low method, makes... Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost...

Q:

undefined MC Qu. 6-74 Shum Manufacturing, which uses the high-low method, makes... Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different...

Q:

When 19,000 units are produced varioble costs are $38 per unit and total costs are $779,000. What are the total costs when 20,000 units are produced? Multiple Choice 5779.000 $817.000 $839.000 Total...

Q:

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units...

Q:

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units...

Q:

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units...

Q:

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units...

Q:

A & L Mechanical sells and services plumbing, heating, and air-conditioning systems. A & Ls cost accounting system tracks two cost categories: direct labor and direct materials. A & L uses a...

Q:

(a) How many milliliters of a stock solution of 6.0 M HNO3 would you have to use to prepare 110 mL of 0.500 M HNO3? (b) If you dilute 10.0 mL of the stock solution to a final volume of 0.250 L, what...

Q:

How often should you reconsider the adequacy of a collateral package? Whenever necessary. When you conduct the annual review. If the business asks to increase credit facilities.

Q:

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

Q:

2-4 What is the role of the information systems function in a business? Describe how the information systems function supports a business. Describe the services provided by information systems...

Q:

1 What are business processes? How are they related to information systems? Define business processes and describe the role they play in organizations. Explain how information technology and...

Q:

2-3 Why are systems for collaboration and social business so important and what technologies do they use? Define collaboration and social business, and explain why they have become so important in...