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# As s ignm ent: HW Set #2 - E3.10, E3.19, E16.16, E16. eBook eBook eBook eBook Exercise 3 .1 0 C o s t Be h a vio r Smo ke C ity, In c., ma n u fa ctu...

Management Accounting problem

Unit fixed cost _________________ _________________ Unit variable cost _________________ _________________ The reason the unit costs changed in the way they did is because: _________________ 2. Exercise 3.19 High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: Required: If required, round your answers to two decimal places. Enter a "0" if required. 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. Forklift depreciation: V \$ _________________ F \$ _________________ Y \$ _________________ Indirect labor: V \$ _________________ eBook eBook eBook eBook
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Solution :Exercise 3.10
1 The driver for overhead activity is number of smokers . 2 Calculation of total overhead cost incurred by Smoke City last year
Overhead Cost = \$543,000 + \$1.34X
where X =...

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