ACC WK 2 EX 2

# ACC WK 2 EX 2 - Sheri Brown Problem 12-16 A B COST DEP...

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Problem 12-16 A. pilot and fuel = direct costs Depreciation = indirect cost B. COST BASE EQUATION RATE DEP. VALUE MILES 24,000,000 / 100,000,000 0.24 / MILE COST RATE x WEIGHT OF BASE = Chicago- S.F. Chicago – N.Y. DEPRECIATION 0.24 4,400 1,056.00 DEPRECIATION 0.24 1,600 \$384.00 PILOT 500.00 300.00 FUEL 350.00 150.00 TOTAL 1,906.00 834.00 Problem 12-17 A. Changes in the number of tents inspected doesn’t affect the total fixed inspection cost. Amount of tents doesn’t increase the cost of inspection. B. There is a relationship between the amount of tents inspected and the inspection cost per unit. Since the total inspection cost is fixed, the cost per unit will increase as the number of tents inspected decreases. C. The inspector’s salary is an indirect cost. Since it is not related to the number of units inspected, it cannot be traced to any particular unit. D. COST BASE EQUATION A. RATE Inspection No. tents \$108,000 ÷ 15,000 \$7.20 per tent MONTH A. RATE x WEIGHT OF

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ACC WK 2 EX 2 - Sheri Brown Problem 12-16 A B COST DEP...

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