y x

Cost Hours b.
l 13200.00 3000.00 1.) High-low Method
13400.00 2050.00 6,600
b= 4.125
16370.00 2900.00 1600.00
h 19800.00 3650.00
17600.00 2670.00 a = y + bx
72960.00 12000.00 a= 4743.75
18500.00 2650.00
Cost Function is Y = 13,200 + 10.15x

2.) 2500 activity

Cost = 15056.25

x y xy x^2
Month Labor Hours Total Production Costs
September 250 2,000 500000 62500
October 350 2,500 875000 122500
November 450 3,000 1350000 202500
December 350 2,500 875000 122500 a.
TOTAL 1400 10000 3600000 510000

x mean 350 sum of xy 3600000

y mean 2500 n 4
sum of x^2 510000

b= 100000 5
20000
a= 750

c.
 x y xy x^2
Month OccupancyElectrical Costs
January 2,604 6257 January 2,604 6257 16293228 6,780,816
February 2,856 6,550 February 2,856 6,550 18706800 8,156,736
March 3,534 7,986 March 3,534 7,986 28222524 12,489,156
April 1,440 4,022 April 1,440 4,022 5791680 2,073,600
May 540 2,289 June 1,116 3,591 4007556 1,245,456
June 1,116 3,591 July 3,162 7,264 22968768 9,998,244
July 3,162 7,264 August 3,608 8,111 29264488 13,017,664
August 3,608 8,111 September 1,260 3,707 4670820 1,587,600
September 1,260 3,707 November 1,080 3,321 3586680 1,166,400
October 186 1,712 December 2,046 5,196 10631016 4,186,116
November 1,080 3,321 Total 22,706 56,005 144,143,560 60,701,788
December 2,046 5,196
x mean 2270.6 sum of xy 144,143,560
y mean 5600.5 n 10
sum of x^2 60,701,788

b= 16978607 1.85648948356
9145544.4
x y a= 1385.15498
January 2,604 6257
February 2,856 6,550
March 3,534 7,986 b= 4,790 1.89477848
April 1,440 4,022 2,528
June 1,116 3,591
July 3,162 7,264 a= 1274.639
August 3,608 8,111
September 1,260 3,707
November 1,080 3,321
December 2,046 5,196

lsrm y= 1385.155 + 1.856489 x

y= 6490.5011

hlm y= 1274.6392 + 1.894778 x

y= 6485.2801
 x y xy x^2

January 2,604 6257 16293228 6,780,816

February 2,856 6,550 18706800 8,156,736
March 3,534 7,986 28222524 12,489,156
April 1,440 4,022 5791680 2,073,600
May 540 2,289 1236060 291,600
June 1,116 3,591 4007556 1,245,456
July 3,162 7,264 22968768 9,998,244
August 3,608 8,111 29264488 13,017,664
September 1,260 3,707 4670820 1,587,600
October 186 1,712 318432 34,596
November 1,080 3,321 3586680 1,166,400
December 2,046 5,196 10631016 4,186,116
TOTAL 23,432 60,006 145,698,052 61,027,984

x mean 1952.667 sum of xy 145,698,052

y mean 5000.5 n 12
sum of x^2 61,027,984
b= 28526336 1.867750391
15273099
a= 1353.406
x y
January 2,604 6257
February 2,856 6,550
March 3,534 7,986
April 1,440 4,022 b= 6,399 1.869959
May 540 2,289 3,422
June 1,116 3,591
July 3,162 7,264 a= 1364.188
August 3,608 8,111
September 1,260 3,707
October 186 1,712
November 1,080 3,321
December 2,046 5,196

lsrm y= 1353.406 + 1.86775039 x

y= 6489.72

hlm y= 1364.188 + 1.86995909 x

y= 6506.575
 JULY AUGUST
Sales (@P25) 1,750,000 1,875,000
Less: Cost of Goods Sold
Beginning inventory 80,000 320,000
Cost applied to production:
Variable manufacturing costs 765,000 720,000
Fixed Manufacturing overhead 595,000 560,000
Cost of Goods Manufactured 1,360,000 1,280,000

Goods available for sale 1,440,000 1,600,000

Less ending inventory 320,000 400,000
Cost of Goods Sold 1,120,000 1,200,000
Underapplied or (overapplied) fixed overhead cost -35,000 0
Adjusted cost of goods sold 1,085,000 1,200,000
Gross Margin 665,000 675,000
Less selling and administrative expenses 620,000 650,000
Net income (loss) 45,000 25,000

JULY AUGUST
Production in units 85,000 80,000
Sales in units 70,000 75,000
 VC
SEPTEMBER JULY AUGUST SEPTEMBER
2,000,000 Sales 1,750,000 1,875,000 2,000,000
Variable COGS
400,000 Manu 630,000 675,000 720,000
Non Manu S n A 420000 450000 480000
540,000 Contribution Margin 700,000 750,000 800,000
420,000 Fixed Cost
960,000 Manu 560000 560000 560000
Non Manu S n A 200,000 200,000 200,000
1,360,000 Operating Income -60,000 -10,000 40,000
80,000
1,280,000 Reconcile
140,000 Op Inc AC 45,000 25,000 -100,000
1,420,000 Less:FOH in ending Inventory 140000 175000 35000
580,000 Add: FOH beg Inv 35000 140000 175000
680,000 Operationg Income VC -60,000 -10,000 40,000
-100,000

SEPTEMBER JULY AUGUST SEPTEMBER

60,000 Production in units 85,000 80,000 60,000
80,000 Sales in units 70,000 75,000 80,000

Beg inv 5,000 20,000 25,000

Produced 85,000 80,000 60,000
avail for sale 90,000 100,000 85,000
Sold 70,000 75,000 80,000
Ending inv 20,000 25,000 5,000

Fixed OH per unit budgeted 7

JIT
a.)
Budgeted Production 80,000
Less: Beg Inv of Dept 25,000
JIT Production 55,000

SEPTEMBER
Sales (@P25) 2,000,000 2,000,000
Less: Cost of Goods Sold
Beginning inventory 400,000 400,000
Cost applied to production:
Variable manufacturing cost 540,000 495000
Fixed Manufacturing overhe 420,000 385000
Cost of Goods Manufacture 960,000 880,000

Goods available for sale 1,360,000 1,280,000

Less ending inventory 80,000 0
Cost of Goods Sold 1,280,000 1,280,000
Underapplied or (overapplie 140,000 175000
Adjusted cost of goods sold 1,420,000 1,455,000
Gross Margin 580,000 545,000
Less selling and administrat 680,000 680,000
Net income (loss) -100,000 -135,000

SEPTEMBER
Production in units 60,000 55,000
Sales in units 80,000 80,000
Normal Cap 20000 a.) Product Cost per Unit Sales 480000
sold 16000 AC Cogs 340000
SP 30 17 GP 140000
Variable Cost VC SnA
dm 4 12
dl 6
FOH 2 b.) Cost of Ending inv
SnA 5 End inv 4000
Fixed Cost AC
FOH 160,000 68000
SnA 40,000 VC
48000