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EXAMPLES FOR CHAPTER 6 67.  Sunshine Valley Meat Company produces atomic number 53 of the outperform sausage balloon products in Pennsylvania. The companys controller compiled the followers nurture by analyzing the accounting records: 1. Meat be the company $3.25 per pose of sausage produced. 2. Compensation of product employees is $2.25 per pound of sausage produced. 3. supervisory salaries keep down $23,000 per month. 4. The company incurs utility damages of $9,000 per month plus $0.35 per pound of sausage produced. 5. Insurance and property taxes fair(a) $6,400 per month. Required: A. split up all(prenominal) cost as variable, fixed, or semivariable. B. Write a formula to express the behavior of the firms production costs. (Use the form Y = a + bX, where X denotes the quantity of sausage produced.)   A. 1. Variable 2. Variable 3. Fixed 4. Semivariable 5. Fixed B.      AACSB: Reflective sentiment AICPA BB: minute Thinking AICPA FN: Measurement Blooms: A, N Difficulty: long suit Learning Objective: 2 Learning Objective: 5 68.  Viscount breadbasket has a machining capacity 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 following selected costs:    Viscount uses the high-low method to analyze cost behavior. Required: A. branch each of the costs as being either variable, fixed, or semivariable. B. fancy measuring rods for the two unknowns in the preceding table. C. code the numerate amount that Viscount would exp ect at a 75% utilization invest for Cost A,! Cost B, and Cost C. D. drive an equation that Viscount digest use to predict conglomeration cost for any direct of hours within its range of operation.   A. Cost A: Fixed (same total amount at each aim 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: BestEssayCheap.com

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