6_takehome_chapter 3_fall 2010_soln

6_takehome_chapter 3_fall 2010_soln - Acc 200 Take-home...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Acc 200 Take-home Quiz Chapter 3 (Managerial Accounting) Solution PROBLEM I: (15 pts) Richardson Corporation plans to increase its advertising budget by 20% next year. The company currently spends $15,000 on advertising costs. In addition to advertising, Richardson spends $50,000 per year for other fixed costs and $10 per unit for variable costs. Required : If Richardson anticipates producing 30,000 units next year, what will be next year’s estimated total costs? Answer: $_ 368,000 ______ Total Costs = Fixed Costs + Variable Cost per Unit (x) Total Costs = $68,000 * + $10 (30,000) * FC = [15,000 + .20(15,000)] + $50,000 = $68,000 PROBLEM II : (70 pts) Reliable Movers Inc. documented the miles driven and total moving van costs for the past five months as follows: Number of Miles Total Vehicle Costs January 3,000 $ 4,800 February 3,500 5,200 March 5,000 6,100 April 4,000 5,000 May 6,000 6,000 A. Which two months exhibit the high and low activity levels? High:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/11/2011 for the course ACC 200 taught by Professor Buckless during the Winter '08 term at N.C. State.

Page1 / 2

6_takehome_chapter 3_fall 2010_soln - Acc 200 Take-home...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online