Scribd Logo
Upload

Welcome to Scribd!

  • Quiz 1 Strat

    Uploaded by

    carl fuerzas
    47 views3 pages
    This document contains three problems related to using the high-low and least squares cost estimation methods. Problem 1 provides factory overhead cost data from previous months and asks to calculate variable and fixed costs. Problem 2 provides payroll cost and hour data from previous quarters and asks similar calculation questions. Problem 3 repeats the payroll data and asks to use the least squares method to determine variable cost, fixed cost, total cost at a given level, and the regression equation.

    Original Description:

    Original Title

    Quiz 1 strat

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains three problems related to using the high-low and least squares cost estimation methods. Problem 1 provides factory overhead cost data from previous months and asks to calculate variable and fixed costs. Problem 2 provides payroll cost and hour data from previous quarters and asks similar calculation questions. Problem 3 repeats the payroll data and asks to use the least squares method to determine variable cost, fixed cost, total cost at a given level, and the regression equation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    47 views3 pages

    Quiz 1 Strat

    Uploaded by

    carl fuerzas
    This document contains three problems related to using the high-low and least squares cost estimation methods. Problem 1 provides factory overhead cost data from previous months and asks to calculate variable and fixed costs. Problem 2 provides payroll cost and hour data from previous quarters and asks similar calculation questions. Problem 3 repeats the payroll data and asks to use the least squares method to determine variable cost, fixed cost, total cost at a given level, and the regression equation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 3

    QUIZ

    Problem 1

    A company needs to know the expected amount of factory overheads cost it will incur in the following
    month.

    Factory overheads cost in the previous three months was as follows:

    Cost Units
    Jan $31,000 6,000
    Feb $20,000 5,000
    Mar $25,000 4,000

    Company expects to produce 7000 units in April.


    Using the High-Low method answer the following

    1. How much is the Variable cost per unit?


    A. 2.5
    B. 0.4
    C. 3.0
    D. 1.5

    2. How much is the total variable cost at 6,000 units?


    A. 2,400
    B. 15,000
    C. 18,000
    D. 9,000

    3. How much is the total Fixed Cost?


    A. 12,000
    B. 13,000
    C. 14,000
    D. 15,000

    4. How much is total cost at 7,000 units?


    A. 34,000
    b. 27,500
    C. 32,500
    D. 35,000

    5. How much is the total cost per unit at 7,000 units?


    A. 4.29
    B. 3.93
    C. 4.64
    D. 4.86
    Problem 2

    Sara is a management accountant in an organization. She has been assigned the task of budgeting
    payroll costs for the next quarter.

    Payroll information of the last 4 quarters is as follows:

    Quarter Work hours Cost $


    1 15,000 400,0000
    2 20,000 480,0000
    3 18,000 440,0000
    4 21,000 500,0000

    23,000 hours are expected to be worked in the first quarter of the next year.
    Using the High-Low method answer the following

    6. How much is the Variable cost per unit?


    A. 16.5
    B. 17
    C. 16.67
    D. 15

    7. How much is the total variable cost at 21,000 hours?


    A. 346,500
    B. 350,000
    C. 357,000
    D. 360,000

    8. How much is the total Fixed Cost?


    A. 150,000
    B. 155,000
    C. 146,666.67
    D. 160,000

    9. How much is total cost at 23,000 hours?


    A. 520,000
    B. 530,000
    C. 550,000
    D. 533,333

    10. How much is the total cost per unit at 23,000 hours?
    A. 74.29
    B. 22.61
    C. 23.91
    D. 23.19
    Problem 3
    Sara is a management accountant in an organization. She has been assigned the task of budgeting
    payroll costs for the next quarter.

    Payroll information of the last 4 quarters is as follows:

    Quarter Work hours Cost $


    1 15,000 400,0000
    2 20,000 480,0000
    3 18,000 440,0000
    4 21,000 500,0000

    23,000 hours are expected to be worked in the first quarter of the next year.
    Using the Least-square method answer the following

    11. How much is the Variable cost per unit?


    A. 16.5
    B. 17
    C. 16.67
    D. 15

    12. How much is the total variable cost at 21,000 hours?


    A. 346,500
    B. 350,000
    C. 357,000
    D. 360,000

    13. How much is the Fixed Cost?


    A. 150,000
    B. 155,000
    C. 146,666.67
    D. 160,000

    14. How much is total cost at 23,000 hours?


    A. 520,000
    B. 530,000
    C. 550,000
    D. 533,333

    15. What is the regression Equation?


    A. Y= 146,666.67+ 16.67x
    B. Y= 146,666.67+ 16x
    C. Y= 150,000+ 16.67x
    D. Y= 150,000+ 15x

    You might also like