Question #4 Refer to the textbook - Exercise 7-2, Page 280 Travel Pickup and Del
ID: 2584171 • Letter: Q
Question
Question #4 Refer to the textbook - Exercise 7-2, Page 280 Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 40% 45% 0.1 5% 100% Vehicle operating expense 75% 5% 0 20% 100% Vehicle depreciation 70% 10% 0 20% 100% Customer representative salaries and expenses 0% 0% 0.85 15% 100% Office expenses 0% 25% 0.35 40% 100% Administrative expenses 0% 5% 0.55 40% 100% Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages - Vehicle operating expense - Vehicle depreciation - Customer representative salaries and expenses - Office expenses - Administrative expenses - Total cost $ - $ - $ - $ - $ - - Question #5 Refer to the textbook - Exercise 8-5, Page 328 1. Under variable costing, only the variable manufacturing costs are included in product costs. Direct materials Direct labour Variable manufacturing overhead Unit product cost $ - Note that selling and administrative expenses are not treated as product costs; that is, they are not included in the costs that are inventoried. These expenses are always treated as period costs and are charged against current period's revenue. 2. The variable costing income statement is as follows: Sales (21,500 x $35) Variable expenses: Variable cost of goods sold: Beginning inventory Add variable manufacturing costs (25,000 units x $20 per unit) Goods available for sale Less: ending inventory (3,500 units x $20 per unit) Variable cost of goods sold Variable selling and administrative (21,500 units x $4 per unit) Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Operating profit $ - 3. The break-even point in units sold computed using the contribution margin per unit as follows: Selling price per unit $ 35 Variable product cost per unit 20 Variable selling and admin cost per unit 4 Contribution margin per unit $ 11 Break-even unit sales = Fixed expenses Unit contribution Margin = = = Question #4 Refer to the textbook - Exercise 7-2, Page 280 Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 40% 45% 0.1 5% 100% Vehicle operating expense 75% 5% 0 20% 100% Vehicle depreciation 70% 10% 0 20% 100% Customer representative salaries and expenses 0% 0% 0.85 15% 100% Office expenses 0% 25% 0.35 40% 100% Administrative expenses 0% 5% 0.55 40% 100% Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages - Vehicle operating expense - Vehicle depreciation - Customer representative salaries and expenses - Office expenses - Administrative expenses - Total cost $ - $ - $ - $ - $ - - Question #5 Refer to the textbook - Exercise 8-5, Page 328 1. Under variable costing, only the variable manufacturing costs are included in product costs. Direct materials Direct labour Variable manufacturing overhead Unit product cost $ - Note that selling and administrative expenses are not treated as product costs; that is, they are not included in the costs that are inventoried. These expenses are always treated as period costs and are charged against current period's revenue. 2. The variable costing income statement is as follows: Sales (21,500 x $35) Variable expenses: Variable cost of goods sold: Beginning inventory Add variable manufacturing costs (25,000 units x $20 per unit) Goods available for sale Less: ending inventory (3,500 units x $20 per unit) Variable cost of goods sold Variable selling and administrative (21,500 units x $4 per unit) Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Operating profit $ - 3. The break-even point in units sold computed using the contribution margin per unit as follows: Selling price per unit $ 35 Variable product cost per unit 20 Variable selling and admin cost per unit 4 Contribution margin per unit $ 11 Break-even unit sales = Fixed expenses Unit contribution Margin = = =Explanation / Answer
Solution:-
Question 4:-
Each entry in the table is derived by multiplying the total cost for the cost category by the percentage taken from the table.
Note :- As per chegg guidelines if more than one question is posted than we liable to answer only first question.
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Travel Pickup and delivery Customer service Other Totals Driver and guard wages 336,000 378,000 84,000 42,000 840,000 Vehicle operating expense 202,500 13,500 0 54,000 270,000 Vehicle depreciation 105,000 15,000 0 30,000 150,000 Customer representative salaries and expenses 0 0 153,000 27,000 180,000 Office expenses 0 10,000 14,000 16,000 40,000 Administrative expenses 0 17,000 187,000 136,000 340,000 Total cost $ 643,500 $ 433,500 $ 438,000 $ 305,000 $ 1,820,000