Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold
Explain the reason for your answer.
Units Produced and Sold 100 500 1,000
Total electric cost $1,500 $1,650 $1,700
Supervisor's monthly salary $4,500 $4,500 $4,500
Assembly line workers' per hour wage rate $30 $30 $30
Total materials cost $800 $4,000 $8,000
Depreciation on factory equipment $5,000 $5,000 $5,000
Total delivery costs $1,400 $1,800 $2,250
What will be an ideal response
Units Sold Is this V, F, or M? Explain your reason.
Total electric cost
This cost has the characteristics of both a fixed cost and a variable cost making it a mixed cost. The total cost changes as volume changes, but not in direct proportion.
Supervisor's monthly salary
This cost does not change in total over wide ranges of volume making it a fixed cost.
Assembly line workers' per hour wage rate
This cost does not change per unit over wide ranges of volume making it a fixed cost.
Total materials cost
This cost is directly proportional to the number units produced making it a variable cost. The total cost changes as volume changes and in direct proportion.
Depreciation on factory equipment
This cost does not change in total over wide ranges of volume making it a fixed cost.
Total delivery costs
This cost has the characteristics of both a fixed cost and a variable cost making it a mixed cost. The total cost changes as volume changes, but not in direct proportion.
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Exhibit 14-13 Yoho Corp issued $500,000 of its ten-year 6% bonds at 104. Each $1,000 bond carries ten warrants. Each warrant allows the holder to purchase one share of $10 par common stock for $50. Following the sale, relevant market values were: Bonds $980 (ex rights) Warrants $14 each Common stock $60 each ? Refer to Exhibit 14-13. The entry to record the sale of the bonds would include a
A) debit to Discount on Bonds Payable for $10,000. B) credit to Bonds Payable for $490,000. C) debit to Cash for $560,000. D) credit to Common Stock Warrants for $65,000.
The amount journalized showing the cost added to finished goods is taken from the cost of production report
Indicate whether the statement is true or false
Which of the following statements is false about workers' compensation law?
A) When workers' compensation commissions or workers' compensation boards make determinations concerning claims appealed to them, their decisions are final. B) For an injury to be compensable under workers' compensation laws, the claimant must prove that the injury arose out of and in the course of his or her employment. C) Worker compensation benefits are paid according to preset limits established by statute or regulation. D) Many worker's compensation acts include stress as a compensable work-related injury.
Indicate whether each of the following statements about the auditor's role in financial accounting is true or false. ________ a) A financial audit guarantees the accuracy of all amounts reported on the financial statements.________ b) A financial audit is a detailed examination of a company's financial statements and underlying accounting records.________ c) The primary responsibility of the independent accounting firm is to the public.________ d) The most favorable type of audit report is called a qualified opinion.________ e) The ultimate responsibility for the financial statements lies with management of the company rather than the independent accounting firm.
What will be an ideal response?