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EXAMPLES FOR CHAPTER 6 67.  Sunshine Valley Meat Company produces iodine of the outperform sausage products in Pennsylvania. The companys controller compiled the quest entropy by analyzing the accounting records: 1. Meat be the company $3.25 per perplex of sausage produced. 2. Compensation of payoff employees is $2.25 per pound of sausage produced. 3. supervisory salaries keep down $23,000 per month. 4. The company incurs utility equals of $9,000 per month plus $0.35 per pound of sausage produced. 5. Insurance and property taxes fair $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 persuasion AICPA BB: minute Thinking AICPA FN: Measurement Blooms: A, N Difficulty: medium Learning Objective: 2 Learning Objective: 5 68.  Viscount breadbasket has a machining capacity of 200,000 hours per year. Utilization of capacity is normally 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. straighten out each of the costs as being either variable, fixed, or semivariable. B. fancy measuring rods for the two unknowns in the preceding table. C. number the numerate amount that Viscount would expect at a 75% utilization invest for Cost A, Cost B, and Cost C. D . produce an equation that Viscount digest! use to predict meat cost for any direct of hours within its range of operation.   A. Cost A: Fixed (same total amount at each level 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: OrderEssay.net

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