158. Corio Corporation reports that at an activity level of 3,800 units, its total variable cost is
$221,464 and its total fixed cost is $94,848.
Required:
For the activity level of 3,900 units, compute: (a) the total variable cost; (b) the total fixed cost;
(c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and
(f) the average total cost per unit. Assume that this activity level is within the relevant range.
159. At an activity level of 5,900 units, Haas Corporation’s total variable cost is $347,982 and
its total fixed cost is $284,321.
Required:
For the activity level of 6,100 units, compute: (a) the total variable cost; (b) the total fixed cost;
(c) the total cost; (d) the average variable cost per unit; (e) the average fixed cost per unit; and
(f) the average total cost per unit. Assume that this activity level is within the relevant range.
160. A number of costs and measures of activity are listed below.
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the
possible measure of activity listed next to it.
161. A number of costs and measures of activity are listed below.
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the
possible measure of activity listed next to it.
A
162. Slonaker Inc. has provided the following data concerning its maintenance costs:
Management believes that maintenance cost is a mixed cost that depends on machine-hours.
Required:
Estimate the variable cost per machine-hour and the fixed cost per month using the high-low
method. Show your work!
163. Utility costs at one of Helker Corporation’s factories are listed below:
Management believes that utility cost is a mixed cost that depends on machine-hours.
Required:
Estimate the variable cost per machine-hour and the fixed cost per month using the high-low
method. Show your work! Round off all calculations to the nearest whole cent.
164. The management of Harrigill Corporation would like to have a better understanding of the
behavior of its inspection costs. The company has provided the following data:
165. In October, Patnode Inc., a merchandising company, had sales of $294,000, selling
expenses of $27,000, and administrative expenses of $35,000. The cost of merchandise
purchased during the month was $211,000. The beginning balance in the merchandise inventory
account was $38,000 and the ending balance was $34,000.
Required:
Prepare a traditional format income statement for October.
2-144
166. Whitman Corporation, a merchandising company, reported sales of 7,400 units for May at
a selling price of $677 per unit. The cost of goods sold (all variable) was $441 per unit and the
variable selling expense was $54 per unit. The total fixed selling expense was $155,600. The
variable administrative expense was $24 per unit and the total fixed administrative expense was
$370,400.
Required:
a. Prepare a contribution format income statement for May.
b. Prepare a traditional format income statement for May.
2-145
167. Donmoyer Sales Corporation, a merchandising company, reported total sales of
$2,230,200 for May. The cost of goods sold (all variable) was $1,518,300, the total variable selling
expense was $214,200, the total fixed selling expense was $86,700, the total variable
administrative expense was $119,700, and the total fixed administrative expense was $138,400.
Required:
a. Prepare a contribution format income statement for May.
b. Prepare a traditional format income statement for May.
2-146
168. Pittman Corporation, a merchandising company, reported the following results for
September:
Required:
a. Prepare a traditional format income statement for September.
b. Prepare a contribution format income statement for September.
2-148
169. Honey Corporation, a merchandising company, reported the following results for January:
Cost of goods sold is a variable cost in this company.
Required:
a. Prepare a traditional format income statement for January.
b. Prepare a contribution format income statement for January.
2-149
170. A number of costs are listed below.
Required:
For each item above, indicate whether the cost is direct or indirect with respect to the cost object
listed next to it.