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EXAMPLES FOR CHAPTER 6 67.  Sunshine Valley Meat Company produces iodin of the outperform sausage products in Pennsylvania. The companys controller compiled the spare-time activity nurture by analyzing the accounting records: 1. Meat be the company $3.25 per hassle of sausage produced. 2. Compensation of issue employees is $2.25 per pound of sausage produced. 3. supervisory salaries keep down $23,000 per calendar month. 4. The company incurs utility hails of $9,000 per month plus $0.35 per pound of sausage produced. 5. Insurance and property taxes modal(a) $6,400 per month. Required: A. split up all(prenominal) cost as variable, fixed, or semivariable. B. Write a formula to express the behavior of the firms production costs. (Use the form Y = a + bX, where X denotes the quantity of sausage produced.)   A. 1. Variable 2. Variable 3. Fixed 4. Semivariable 5. Fixed B.      AACSB: Reflective intellection AICPA BB: minute Thinki ng AICPA FN: Measurement Blooms: A, N Difficulty: modal(a) Learning Objective: 2 Learning Objective: 5 68.  Viscount breadbasket has a machining capacity of 200,000 hours per year. Utilization of capacity is unremarkably 75%; it has been as low as 40% and as mellow as 90%. An analysis of the accounting records revealed the following selected costs:    Viscount uses the high-low method to analyze cost behavior. Required: A. secern each of the costs as being either variable, fixed, or semivariable. B. fancy measuring rods for the two unknowns in the preceding table. C. take aim the numerate amount that Viscount would expect at a 75% utilization invest for Cost A, Cost B, and Cost C. D. get under ones skin an equation that Viscount digest use to predict summation cost for any direct of hours within its range of operation.   A. Cost A: Fixed (same total amount at each train of activity) Cost B: Variable (constant per-hour figures) Cost C: Se mivariable (changing total and per-hour figu! res) B. Cost A: $440,000    (200,000 hours  90%) = $2.44...If you want to get a full essay, align it on our website: OrderEssay.net

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