1. Question :
Related to Problem #1, use the high-low method to determine the estimating cost
function with machine-hours as the cost driver.
Student Answer:
The variable cost per
machine hour is $24.
Fixed cost is $45,600.
Therefore, the cost
function wo
1. Question :
(TCO 11)An advantage of financial cost of quality measures is that they
Student Answer:
are often easy to quantify
andunderstand.
provide immediate shortrun feedback onwhether
quality improvement
effortshave, in fact,
succeeded in improving
1. Question :
Related to Problem 1, classify each of the given quality costs as prevention costs,
appraisal costs, internal failure costs, or external failure costs.
Student Answer:
a) Internal failure costs
b) Internal failure costs
c) Prevention costs d
1. Question :
(TCO 9) To guide cost allocation decisions,the benefits-received criterion
Student Answer:
may use an allocation
base of divisionrevenues
to allocate advertising
costs.
is the primarily used
criterion in activity-based
costing.
results in su
1. Question :
Related to Problem 1, compute the operating income for each of the five
customers.
Student Answer:
Marveline - 75 Jackson
- (105) Jones - 5 Saas (35) Stephan - 130
Instructor Explanation: CustomerRevenuesCustomer
CostsOperatingincome
Marveli
1. Question :
Related to Problem 1, compute the average markup percentage for setting prices
as a percentage of the full cost of the product.
Student Answer:
70,000/230,000 =
30.43%
Instructor Explanation: $60,000 + $40,000 + $30,000 + $50,000 + $20,000 +
1. Question :
Related to Problem #1, determine the amount allocated to each product if the
estimated net realizable value method is used, and compute the cost per case for
each product.
Student Answer:
Cost Allocation Cost
per case Catsup
132,631.58 1.33
1. Question :
Related to problem 1, determine the quantity of framing, glass, and backing that
is to be purchased during August
Student Answer:
Framing = 40,750 Glass
= 10,250 Backing =
20,250
Instructor Explanation: Framing
GlassBacking
Desired ending in