Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 41 views

    Tutorial 3 Cost Behaviour Analysis

    Uploaded by

    Dashania Gregory
    The document is a tutorial on cost behaviour analysis containing 5 questions. It provides cost data for various companies and their production levels. It asks the student to classify costs as variable, fixed or mixed. It also asks the student to use the high-low method to determine the fixed and variable cost components of maintenance costs and graph the cost behaviour. The tutorial aims to help students understand how to analyze different cost behaviours as production levels change.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Tutorial 3 Cost Behaviour Analysis

    Uploaded by

    Dashania Gregory
    41 views3 pages
    The document is a tutorial on cost behaviour analysis containing 5 questions. It provides cost data for various companies and their production levels. It asks the student to classify costs as variable, fixed or mixed. It also asks the student to use the high-low method to determine the fixed and variable cost components of maintenance costs and graph the cost behaviour. The tutorial aims to help students understand how to analyze different cost behaviours as production levels change.

    Original Title

    Tutorial 3 Q

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document is a tutorial on cost behaviour analysis containing 5 questions. It provides cost data for various companies and their production levels. It asks the student to classify costs as variable, fixed or mixed. It also asks the student to use the high-low method to determine the fixed and variable cost components of maintenance costs and graph the cost behaviour. The tutorial aims to help students understand how to analyze different cost behaviours as production levels change.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    41 views3 pages

    Tutorial 3 Cost Behaviour Analysis

    Uploaded by

    Dashania Gregory
    The document is a tutorial on cost behaviour analysis containing 5 questions. It provides cost data for various companies and their production levels. It asks the student to classify costs as variable, fixed or mixed. It also asks the student to use the high-low method to determine the fixed and variable cost components of maintenance costs and graph the cost behaviour. The tutorial aims to help students understand how to analyze different cost behaviours as production levels change.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    DMG 5034: MANAGEMENT ACCOUNTING Tri 2 2021/2022

    TUTORIAL 3
    TOPIC 3: COST BEHAVIOUR ANALYSIS

    TUTORIAL 3
    COST BEHAVIOUR ANALYSIS

    Question 1

    Tumi Company manufactures a single product. Annual production costs incurred in


    manufacturing process are shown below for two levels of production.
    Costs Incurred
    Productions in 5,000 10,000
    Units
    Production Total Cost Cost/Unit Total Cost Cost/Unit
    costs
    Direct materials RM8,000 RM1.60 RM16,000 RM1.60
    Direct labor 9,500 1.90 19,000 1.90
    Utilities 2,000 0.40 3,500 0.35
    Rent 4,000 0.80 4,000 0.40
    Maintenance 800 0.16 1,100 0.11
    Supervisory 1,000 0.20 1,000 0.10
    salaries

    Instructions
    a) Define the terms variable costs, fixed costs, and mixed costs.
    b) Classify each cost above as either variable, fixed, or mixed.

    Question 2

    Careplus Enterprises is considering manufacturing a new product. It projects the cost of direct
    materials and rent for a range of output as shown below.

    Output in Units Rent Expenses Direct Materials


    1,000 RM5,000 RM4,000
    2,000 5,000 7,200
    3,000 8,000 9,000
    4,000 8,000 12,000
    5,000 8,000 15,000
    6,000 8,000 18,000
    7,000 8,000 21,000
    8,000 8,000 24,000
    9,000 10,000 29,300
    10,000 10,000 35,000
    11,000 10,000 44,000

    Instructions
    a) Diagram the behavior each cost for output ranging from 1,000 to 11,000 units.
    b) Determine the relevant range of activity for this product.
    c) Calculate the variable costs per unit within the relevant range.
    d) Indicate the fixed cost within the relevant range.
    _______________________________________________________________________________________________________________
    FMS 1
    DMG 5034: MANAGEMENT ACCOUNTING Tri 2 2021/2022
    TUTORIAL 3
    TOPIC 3: COST BEHAVIOUR ANALYSIS

    Question 3

    The controller of Biotech Industries has collected the following monthly expense data for use
    in analyzing the cost behavior of maintenance costs.

    Month Total Maintenance Costs Total Machine Hours


    January RM2,500 300
    February 3,000 350
    March 3,600 500
    April 4,500 690
    May 3,200 400
    June 4,900 700

    Instructions
    a) Determine the fixed- and variable-cost components using the high-low method.
    b) Prepare a graph showing the behavior of maintenance costs, and identify the fixed- and
    variable-cost elements. Use 100-hour increments and RM1,000 cost increments.

    Question 4

    Smart Furniture Corporation incurred the following costs.


    1. Wood used in the production of furniture.
    2. Fuel used in delivery trucks.
    3. Straight-line depreciation on factory building.
    4. Screw used in the production of furniture.
    5. Sales staff salaries.
    6. Sales commissions.
    7. Property taxes.
    8. Insurance on buildings.
    9. Hourly wages of furniture craftsmen.
    10. Salaries of factory supervisors.
    11. Utilities expense.
    12. Telephone bill.

    Instructions
    Identify the costs above as variable, fixed, or mixed.

    Question 5
    _______________________________________________________________________________________________________________
    FMS 2
    DMG 5034: MANAGEMENT ACCOUNTING Tri 2 2021/2022
    TUTORIAL 3
    TOPIC 3: COST BEHAVIOUR ANALYSIS

    The controller of Dpharma Industries has collected the following monthly expense data for use
    in analyzing the cost behavior of maintenance costs.

    Month Total Maintenance Costs Total Machine Hours


    January RM2,750 3,500
    February 3,000 4,000
    March 3,600 6,000
    April 4,500 7,900
    May 3,200 5,000
    June 5,000 8,000

    Instructions
    a) Determine the fixed- and variable-cost components using high-low method.
    b) Prepare a graph showing the behavior of maintenance costs, and identify the fixed- and
    variable-cost elements. Use 2,000-hour increments and RM1,000 cost increments.

    _______________________________________________________________________________________________________________
    FMS 3

    You might also like