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Quiz - Postquiz - Answer Key - Fall 2010

# Quiz - Postquiz - Answer Key - Fall 2010 - Quiz 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 Company’s 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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Quiz - Postquiz - Answer Key - Fall 2010 - Quiz 4 –...

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