Quiz - Postquiz - Answer Key - Fall 2010

Quiz - Postquiz - Answer Key - Fall 2010 - Quiz 4 Chapter 4...

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Unformatted text preview: Quiz 4 Chapter 4 Name: Answer Key 9/20/10 ACC 312 - Lendecky Partial credit will be given on questions 1-3 1. Ginsburg and Company provide you with the following data: Supervision Cost Units Sold January $27,500 2,400 February $27,500 2,560 March $32,540 3,360 April $30,000 2,880 May $32,630 3,300 a. Using the high-low method what is Ginsburg and Companys cost equation for supervision costs? (worth 10 points) b. Ginsburg and Company expect to sell 3,000 units in June, using the high-low method what do you estimate their supervision costs to be? (worth 10 points) a. ($32,540 - $27,500) / (3,360 2,400) $5,040 / 960 $5.25 P/C = 5 points Fixed costs at high point $32,540 ($5.25)(3,360) $32,540 - $17,640 $14,900 P/C = 5 points Fixed costs at low point $27,500 ($5.25)(2,400) $27,500 - $12,600 $14,900 Supervision costs = $5.25x + $14,900 b. ($5.25)(3,000) + $14,900 $15,750 + $14,900 $30,650 give the full 10 points give correctly plugged into wrong equation 2. Suppose a firm provides you with the following information for the most recent period of operations:...
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This note was uploaded on 12/17/2010 for the course ACC 02320 taught by Professor Devidal during the Fall '09 term at University of Texas at Austin.

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Quiz - Postquiz - Answer Key - Fall 2010 - Quiz 4 Chapter 4...

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