Access over 20 million homework & study documents
search

Acc650 t4

Content type

User Generated

Rating

Showing Page:
1/5
Running head: Cost Allocation Concepts 1
Week Four Cost Allocation Concepts
Student Name
ACC 650
February 10, 2021

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/5
Cost Allocation Concepts 2
Problem 637
Required:
1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed,
discretionary fixed, step-fixed, or semi-variable. Show calculations to support your answers for mining
labor/fringe benefits and royalties.
The analysis and classification based on the high-low method
1500 ton ($)
2600 ton ($)
Nature of cost
Depreciation
25 000
25 000
Committed fixed cost
Charitable contribution
11 000
0
Discretionary fixed cost
Mining labor/ fringe
benefit
345 000
598 000
Variable cost
Royalties
135 000
210 000
Semi-variable cost
Trucking and hauling
275 000
325 000
Step fixed cost
--
Variable per cost unit =difference in variable /difference in tons
(598 000-345 000)/ (2600-1500) = $230 per ton
Fixed cost- mining = total cost variable cost
598 000-(230 *2600)= $ 0
--
Variable cost per unit- royalty = difference in total costs /difference in tons
(201000-135000)/ (2600-1500) =$ 60 per ton
Fixed cost- royalty = total cost variable cost
201 000- ($60 * 2600) = $ 45 000
2. Calculate the total cost for next February when 1,650 tons are expected to be extracted.
Particulars
1650 ton ($)
Depreciation
25 000
Mining labor/fringe benefit
379 500
Royalties- variables
99 000
Royalties- fixed
45 000
Trucking and hauling
275 000
Total cost
823 500

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/5

Sign up to view the full document!

lock_open Sign Up
End of Preview - Want to read all 5 pages?
Access Now

Unformatted Attachment Preview

Running head: Cost Allocation Concepts 1 Week Four – Cost Allocation Concepts Student Name ACC 650 February 10, 2021 Cost Allocation Concepts 2 Problem 6–37 Required: 1. Classify the five costs listed in terms of their behavior: variable, step-variable, committed fixed, discretionary fixed, step-fixed, or semi-variable. Show calculations to support your answers for mining labor/fringe benefits and royalties. The analysis and classification based on the high-low method 1500 ton ($) Depreciation 25 000 Charitable contribution 11 000 Mining labor/ fringe 345 000 benefit Royalties 135 000 Trucking and hauling 275 000 2600 ton ($) 25 000 0 598 000 Nature of cost Committed fixed cost Discretionary fixed cost Variable cost 210 000 325 000 Semi-variable cost Step fixed cost -Variable per cost unit =difference in variable /difference in tons (598 000-345 000)/ (2600-1500) = $230 per ton Fixed cost- mining = total cost – variable cost 598 000-(230 *2600)= $ 0 -Variable cost per unit- royalty = difference in total costs /difference in tons (201000-135000)/ (2600-1500) =$ 60 per ton Fixed cost- royalty = total cost – variable cost 201 000- ($60 * 2600) = $ 45 000 2. Calculate the total cost for next February when 1,650 tons are expected to be extracted. Particulars Depreciation Mining labor/fringe benefit Royalties- variables Royalties- fixed Trucking and hauling Total cost 1650 ton ($) 25 000 379 500 99 000 45 000 275 000 823 500 Cost Allocation Concepts 3 3. Com ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Super useful! Studypool never disappoints.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4