Question

Yun Company is in the process of preparing its budget for the next fiscal year. The...

Yun Company is in the process of preparing its budget for the next fiscal year. The company has had problems controlling costs in prior years and had decided to adopt a flexible budgeting system this year. Many of its costs contain both fixed and variable cost components. A method that can be used to separate costs into fixed and variable components is

A.

Linear programming.
B.

Simulation.
C.

Time series or trend analysis.
D.

Regression analysis.

Given actual amounts of a mixed (semivariable) cost for various levels of output, which of the following will give the most precise mathematical measure of the fixed and variable components but be most difficult to compute?

A.

Scattergram approach.
B.

High-low method.
C.

Bayesian statistics.
D.

Regression analysis (Least-squares method).

Which one of the following budgeting methodologies would be most appropriate for a firm facing a significant level of uncertainty in unit sales volumes for next year?

A.

Life-cycle budgeting.
B.

Top-down budgeting.
C.

Static (fixed) budgeting.
D.

Flexible budgeting.

An understanding of cost behavior is useful to managers for:

A.

Inventory costing and income determination
B.

External reporting
C.

Absorption costing
D.

Flexible budgeting

A flexible budget is appropriate for a marketing budget and a factory overhead budget.

True

False

The Kramer Company developed a cost function for manufacturing overhead costs of Y = $14,000 + $5x. Estimated manufacturing overhead costs at 20,000 units of production would be

A.

$100,000
B.

$114,000
C.

$15,000
D.

$134,000

Mount Company incurred a total cost of $8,600 to produce 400 units of pulp. Each unit of pulp required 5 direct labor hours to complete. What is the total fixed cost if the variable cost was $1.50 per direct labor-hour?

A.

$2,600
B.

$5,600
C.

$1,700
D.

$4,100
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Question 1

Yun Company is in the process of preparing its budget for the next fiscal year. The company has had problems controlling costs in prior years and had decided to adopt a flexible budgeting system this year. Many of its costs contain both fixed and variable cost components. A method that can be used to separate costs into fixed and variable components is

Answer :

Regression analysis

It can be used to separate costs into fixed and variable components by means of least squares.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
McKenna Company planned to produce 900 units during April with a total overhead budget of $12,400.  ...
McKenna Company planned to produce 900 units during April with a total overhead budget of $12,400.   However, while manufacturing the 1,000 units the microcomputer that contained the month's cost information broke down. With the computer out of commission, the accountant has been unable to complete the variance analysis report. The information missing from the report is lettered in the following set of data: Variable overhead: Standard cost per unit: 0.4 labour hour at $4 per hour Actual costs: $2,100 for...
Hollywood Jewellers planned to produce 1,800 necklaces during March with a total overhead budget of $49,600....
Hollywood Jewellers planned to produce 1,800 necklaces during March with a total overhead budget of $49,600. However, while manufacturing the 2,000th necklace the microcomputer that contained the month's cost information broke down. With the computer out of commission, the company has asked you to complete the variance analysis report. The missing information of the report is lettered in the following set of data: Variable overhead: Standard cost per necklace: 0.4 labour hour at $8 per hour Actual costs: $8,400 for...
A company reported the following cost information for the last fiscal year when it produced 100,000...
A company reported the following cost information for the last fiscal year when it produced 100,000 units. Direct labor $200,000 Direct materials 100,000 Manufacturing overhead 200,000 Selling and administrative expenses 150,000 All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expenses. Using flexible budgeting, what are the total costs associated with producing and selling 110,000 units? A. $715,000 B. $450,000 C. $650,000 D. $695,000
Sullivan Company is preparing its Manufacturing Overhead budget for the second quarter of the year. Budgeted...
Sullivan Company is preparing its Manufacturing Overhead budget for the second quarter of the year. Budgeted variable factory overhead is $3.00 per unit produced; budgeted fixed factory overhead is $75,000 per month, with $16,000 of this amount being factory depreciation. Refer to Sullivan Company. If the budgeted production for April is 6,000 units, then the total budgeted factory overhead for April is: A. $82,000 B. $93,000 C. $85,000 D. $77,000
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing...
Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor $1.10 Indirect materials 0.60 Utilities 0.40 Fixed overhead costs per month are Supervision $3,900, Depreciation $1,200, and Property Taxes $500. The company believes it will normally operate in a range of 7,400–11,300 direct labor hours per month. Assume that in July 2017, Myers Company incurs the following manufacturing overhead costs. Variable Costs Fixed...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 11,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $106,700    Power and light 4,400    Indirect materials 29,700       Total variable overhead cost $140,800 Fixed overhead costs:    Supervisory salaries $49,280    Depreciation of plant and equipment 30,980    Insurance and property taxes 19,710       Total fixed overhead cost 99,970 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 16,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $152,000    Power and light 7,200    Indirect materials 46,400       Total variable overhead cost $205,600 Fixed overhead costs:    Supervisory salaries $71,960    Depreciation of plant and equipment 45,230    Insurance and property taxes 28,780       Total fixed overhead cost 145,970 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 16,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $137,600    Power and light 5,600    Indirect materials 35,200       Total variable overhead cost $178,400 Fixed overhead costs:    Supervisory salaries $62,440    Depreciation of plant and equipment 39,250    Insurance and property taxes 24,980       Total fixed overhead cost 126,670 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 14,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $124,600    Power and light 4,900    Indirect materials 46,200       Total variable overhead cost $175,700 Fixed overhead costs:    Supervisory salaries $61,490    Depreciation of plant and equipment 38,650    Insurance and property taxes 24,600       Total fixed overhead cost 124,740 Total factory...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...
Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 8,000 hours of productive capacity in the department: Variable overhead costs:    Indirect factory labor $78,400    Power and light 2,960    Indirect materials 25,600       Total variable overhead cost $106,960 Fixed overhead costs:    Supervisory salaries $37,440    Depreciation of plant and equipment 23,530    Insurance and property taxes 14,970       Total fixed overhead cost 75,940 Total factory...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT