Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.24E
Matching graphs with descriptions of cost and revenue behavior. (D. Green, adapted) Given here are a number of graphs.
The horizontal axis of each graph represents the units produced over the year, and the vertical axis represents total cost or revenues.
Indicate by number which graph best fits the situation or item described (a–h). Some graphs may be used more than once; some may not apply to any of the situations.
Required
- a. Direct material costs
- b. Supervisors’ salaries for one shift and two shifts
- c. A cost–volume–profit graph
- d. Mixed costs—for example, car rental fixed charge plus a rate per mile driven
- e.
Depreciation of plant, computed on a straight-line basis - f. Data supporting the use of a variable-cost rate, such as
manufacturing labor cost of $14 per unit produced - g. Incentive bonus plan that pays managers $0.10 for every unit produced above some level of production
- h. Interest expense on $2 million borrowed at a fixed rate of interest
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Atlanta manufactures 12,500 units of Product A and 10,200 units of Product B per month. Each unit of Product A uses $100 of direct
materials and $45 of direct labor, while each unit of Product B uşes $140 of direct materials and $75 of direct labor.
Classify each of the following as a variable, fixed cost or mixed cost.
a. Direct labour
b. Depreciation of machinery
c. Factory rental
d. Factory managers salary
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f. Salaries of sales clerks
g. Maintenance for production equipment based on production volume
h. Telephone charges
What formula do we use in accounting to determine estimated total manufacturing overhead (MOH)?
Group of answer choices
Y= mX +b
Y = a + bX
(Estimated Total MOH/(Estimated Total Cost Driver)
(Actual Total MOH)/(Actual Total Cost Driver)
(Estimated Total MOHV(Actual Total Cost Driver)
Chapter 10 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 10 - What two assumptions are frequently made when...Ch. 10 - Describe three alternative linear cost functions.Ch. 10 - What is the difference between a linear and a...Ch. 10 - High correlation between two variables means that...Ch. 10 - Name four approaches to estimating a cost...Ch. 10 - Describe the conference method for estimating a...Ch. 10 - Describe the account analysis method for...Ch. 10 - List the six steps in estimating a cost function...Ch. 10 - When using the high-low method, should you base...Ch. 10 - Describe three criteria for evaluating cost...
Ch. 10 - Define learning curve. Outline two models that can...Ch. 10 - Discuss four frequently encountered problems when...Ch. 10 - Prob. 10.13QCh. 10 - All the independent variables in a cost function...Ch. 10 - Multicollinearity exists when the dependent...Ch. 10 - HL Co. uses the high-low method to derive a total...Ch. 10 - A firm uses simple linear regression to forecast...Ch. 10 - In regression analysis, the coefficient of...Ch. 10 - A regression equation is set up, where the...Ch. 10 - What would be the approximate value of the...Ch. 10 - Estimating a cost function. The controller of the...Ch. 10 - Identifying variable-, fixed-, and mixed-cost...Ch. 10 - Various cost-behavior patterns. (CPA, adapted)....Ch. 10 - Matching graphs with descriptions of cost and...Ch. 10 - Account analysis, high-low. Stein Corporation...Ch. 10 - Account analysis method. Gower, Inc., a...Ch. 10 - Prob. 10.27ECh. 10 - Estimating a cost function, high-low method. Lacy...Ch. 10 - Linear cost approximation. Dr. Young, of Young and...Ch. 10 - Cost-volume-profit and regression analysis....Ch. 10 - Regression analysis, service company. (CMA,...Ch. 10 - High-low, regression. May Blackwell is the new...Ch. 10 - Learning curve, cumulative average-time learning...Ch. 10 - Learning curve, incremental unit-time learning...Ch. 10 - High-low method. Wayne Mueller financial analyst...Ch. 10 - High-low method and regression analysis. Market...Ch. 10 - High-low method; regression analysis. (CIMA,...Ch. 10 - Regression, activity-based costing, choosing cost...Ch. 10 - Interpreting regression results. Spirit...Ch. 10 - Cost estimation, cumulative average-time learning...Ch. 10 - Cost estimation, incremental unit-time learning...Ch. 10 - Regression; choosing among models. Apollo Hospital...Ch. 10 - Multiple regression (continuation of 10-42). After...Ch. 10 - Cost estimation. Hankuk Electronics started...Ch. 10 - Prob. 10.45PCh. 10 - Interpreting regression results, matching time...Ch. 10 - Purchasing department cost drivers, activity-based...Ch. 10 - Purchasing department cost drivers, multiple...
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