Homework - Week 1

# Total cost for fixedmanufacturing overhead 90000

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Total cost for fixedmanufacturing overhead \$90,000 <--Correct!

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5. The only difference that takes place is the fixed overhead per unit becomes lower, because of the higher quanity.
Cost Unit Variable Cost = 259,000 / 35,000 11,970 105000 7.4 cents per unit 9380 70000 change 2,590 35000 Highest: 11,970 Less: (105,000 x 7.4 cents) Fixed cost = 4200 2. Y = \$.074X x \$4,200 3. Y = .074(80,000) + 4,200 \$10,120 1. Using the high-low metho, estimate the variable and fixed cost elements of the annual cost of the truck operation.

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EXERCISE 5-8 Guest Days High Level 12,000 13,500 Low Level 4,000 7,500 Difference 8,000 6,000 Variable Cost element= 6,000/8,000 = \$.75 per guest day Fixed Cost Element Custodial Supplies Expense (High Level) 13,500 Variable cost 12,000 guest days x \$.75 9,000 Fixed Cost Element 4,500 11,000 guest days Fixed Cost 4,500 Variable Cost 8,250 11,000 x \$.75 Total Cost 12,750 Custodial Supplies Expense
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