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exam 3 set B solution

# exam 3 set B solution - Acct101 T3 Set B Solution Key with...

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Acct101 T3 Set B Solution Key with deductions noted in brackets: [ ]. 1) 10%. WasteKing wants to determine a fuel surcharge to add to its customers’ bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck’s operating costs so it has a better idea how distance affects these costs. Month Miles driven Total operating costs January 15,900 \$9,000 February 17,200 \$9,800 March 14,500 \$8,600 April 16,100 \$8,800 May 17,100 \$8,600 June 15,500 \$8,100 [-4] Find the variable cost per mile using the high-low method. \$0.444 = (\$9,800-8,600)/(17,200-14,500) [-4] Using the high-low method, determine the fixed costs. \$ 2,244.45 = \$9,800-17,000*\$0.444 . 2. 20%. PBA Co. manufactures bowling balls. The following data pertain to last month. Beginning finished goods inventory 0 Goods manufactured 12,000 balls Ending finished goods inventory 2,000 balls Sales commissions \$3.00 per ball sold Fixed manufacturing overhead \$36,000 Fixed marketing expenses \$10,000 Sales 10,000 balls at \$30 each Variable costs of manufacturing 1 bowling ball \$10.00 [-6] a) Using variable costing, what is \$contribution margin for last month? \$170,000 = 10,000 *(30-(3+10)) [-6]

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