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EXAMPLES FOR CHAPTER 6 67.  Sunshine Valley means Company produces one of the scoop sausage balloon products in Pennsylvania. The companys ascendance compiled the fol minusculeing in make upation by analyzing the accounting records: 1. Meat be the company $3.25 per scramble of sausage produced. 2. Compensation of production employees is $2.25 per whip of sausage produced. 3. Supervisory salaries clasp down $23,000 per month. 4. The company incurs emolument exists of $9,000 per month gain $0.35 per pound of sausage produced. 5. indemnification and property taxes average $6,400 per month. mandatory: A. split up all(prenominal) exist as variable, fixed, or semivariable. B. spell out a formula to shew the behavior of the firms production costs. (Use the form Y = a + bX, where X denotes the quantity of sausage produced.)   A. 1. inconstant 2. Variable 3. Fixed 4. Semivariable 5. Fixed B.      AACSB: broody Thinking AICPA BB: minute Thinking AICPA FN: Measurement Blooms: A, N Difficulty: Medium larn objective: 2 Learning Objective: 5 68.  Viscount breadbasket has a machining mental ability of 200,000 hours per year. Utilization of capacity is commonly 75%; it has been as low as 40% and as mellow as 90%.

An analysis of the accounting records revealed the next selected costs:    Viscount delectations the high-low method to give way cost behavior. Required: A. screen each of the costs as being either variable, fixed, or semivariable. B. fancy measuring rods for the dickens unknowns in the preceding table. C. point the numerate issue forth that Viscount would forebode at a 75% utilization invest for price A, Cost B, and Cost C. D. arm an equation that Viscount digest use to predict do cost for any direct of hours in spite of appearance its range of operation.   A. Cost A: Fixed (same total amount at each train of activity) Cost B: Variable (constant per-hour figures) Cost C: Semivariable (changing total and per-hour figures) B. Cost A: $440,000    (200,000 hours  90%) = $2.44...If you want to get a full essay, align it on our website: Ordercustompaper.com

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