EXERCISE 5-12 (30 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE 2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE 2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
2. Scattergraph method (see the scattergraph on the following page): (Note: Students’ answers will vary due to the inherent imprecision of the quick-and-dirty method.) The line intersects the cost axis at about $1,200. The variable cost can be estimated as follows: Total cost at 100 scans (a point that falls on the line).... $3,000Less the fixed cost element... 1,200Variable cost element (total) ... $1,800 $1,800 ÷ 100 scans = $18 per scan. Therefore, the cost formula is: Y = $1,200 + $18X.

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Solutions Manual, Chapter 5

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Problem 5-17 (continued) The completed scattergraph: Y$4,500$4,000$3,500$3,000$2,500$2,000$1,500Total Utilities Cost$1,000$500X$00 20 40 60 80 100 120 140 160Number of ScansProblem 5-18 (30 minutes)