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Ch 10 Solutions Horngren 13th Edition

# Ch 10 Solutions Horngren 13th Edition - Ch 10 Solutions...

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Ch 10 Solutions Horngren 13 th Edition 10-18 (20 min.) Various cost-behavior patterns. 1. K 2. B 3. G 4. J Note that A is incorrect because, although the cost per pound eventually equals a constant at \$9.20, the total dollars of cost increases linearly from that point onward. 5. I The total costs will be the same regardless of the volume level. 6. L 7. F This is a classic step-cost function. 8. K 9. C 10-19 (30 min.) Matching graphs with descriptions of cost and revenue behavior. a. (1) b. (6) A step-cost function. c. (9) d. (2) e. (8) f. (10) It is data plotted on a scatter diagram, showing a linear variable cost function with constant variance of residuals. The constant variance of residuals implies that there is a uniform dispersion of the data points about the regression line. g. (3) h. (8) 10-22 (30 min.) Account analysis method. 1. Manufacturing cost classification for 2009: Account Total Costs (1) % of Total Costs That is Variable (2) Variable Costs (3) = (1) × (2) Fixed Costs (4) = (1) – (3) Variable Cost per Unit (5) = (3) ÷ 75,000 Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, admin \$300,000 225,000 37,500 56,250 60,000 75,000 95,000 100,000 100% 100 100 20 50 40 0 0 \$300,000 225,000 37,500 11,250 30,000 30,000 0 0 \$ 0 0 0 45,000 30,000 45,000 95,000 100,000 \$4.00 3.00 0.50 0.15 0.40 0.40 0 0 Total \$948,750 \$633,750 \$315,000 \$8 .45 Total manufacturing cost for 2009 = \$948,750 10-1

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Variable costs in 2010: Account Unit Variable Cost per Unit for 2009 (6) Percentage Increase (7) Increase in Variable Cost per Unit (8) = (6) × (7) Variable Cost per Unit for 2010 (9) = (6) + (8) Total Variable Costs for 2010 (10) = (9) × 80,000 Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, admin. \$4.00 3.00 0.50 0.15 0.40 0.40 0 0 5% 10 0 0 0 0 0 0 \$0.20 0.30 0 0 0 0 0 0 \$4.20 3.30 0.50 0.15 0.40 0.40 0 0 \$336,000 264,000 40,000 12,000 32,000 32,000 0 0 Total \$8 .45 \$0 .50 \$8 .95 \$716,000 10-2
Fixed and total costs in 2010: Account Fixed Costs for 2009 (11) Percentag e Increase (12) Dollar Increase in Fixed Costs (13) = (11) × (12) Fixed Costs for 2010 (14) = (11) + (13) Variable Costs for 2010 (15) Total Costs (16) = (14) + (15) Direct materials Direct manufacturing labor Power Supervision labor Materials-handling labor Maintenance labor Depreciation Rent, property taxes, admin.

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Ch 10 Solutions Horngren 13th Edition - Ch 10 Solutions...

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