ELISA DWI LESTARI

14080694037
S1AK14 A
EXERCISE 14-28 HIGH-LOW METHOD
Month
January
February
March
April
May
June
July
August
Total

Tanning Appoinments
700
2,000
3,100
2,500
1,500
2,300
2,150
3,000
17,250

Total Cost ($)

1,758
2,140
2,790
2,400
1,800
2,275
2,200
2,640
18,003

1. The High Point was in March with 3100 appoinment.

The Low Point was in January with 700 appoinment.
($ 2790$ 1758)
2. Variable Rate =
(3100700)
=

$ 1032
2400

= $0,43 per appointment

Using The High Point
Fix Cost
= $2790 ($0,43 x 3100)
= $1,457
Using The Low Point
Fix Cost
= $1758 ($0,43 x 700)
= $1,457
3. Cost formula :
Y
= $1,457 + ($0,43 x Tanning Appointments)
Total Cost Tanning Appoinment :
Y
= $1,457 + ($0.43 x 17,250)
= $1,457 + $7,417.5
= $8,874.5
4. Predict cost of Tanning service in September for 2,500 appointments :
Y
= $1,457 + ($0,43 x Tanning Appointments
= $1,457 + ($0.43 x 2,500)
= $1,457 + $1,075

= $2,532

EXERCISE 14-30 METHOD OF LEAST SQUARES

Month
January
February
March
April
May
June
July
August
Total

Tanning Appoinments
700
2,000
3,100
2,500
1,500
2,300
2,150
3,000
17,250

Total Cost ($)

1,758
2,140
2,790
2,400
1,800
2,275
2,200
2,640
18,003

Y = a + bX
Y = Total Cost
a = Fix Cost
b = Variable Cost
X = Activity Level
1. Cost formula for Tanning service using the result from method of least square
Bulan
Januari
Februari
Maret
April
Mei
Juni
Juli
Agustus
Total

X
700
2,000
3,100
2,500
1,500
2,300
2,150
3,000
17,250

Y ($)
1,758
2,140
2,790
2,400
1,800
2,275
2,200
2,640
18,003

XY ($)
1,230,600
4,280,000
8,649,000
6,000,000
2,700,000
5,232,500
4,730,000
7,920,000

X2
490,000
4,000,000
9,610,000
6,250,000
2,250,000
5,290,000
4,662,500
9,000,000

Y2 ($)
3,090,564
4,579,600
7.784,100
5,760,000
3.240.000
5,175,625
4,840,000
6,969,600

40,742,100

41,512,500

41,439,489

Variable Cost :
b

X 2
n X 2
n XY X . Y

17,250
8 ( 41,512,500 )
8 ( $ 40,742,100 )(17,250 x $ 18,003)

$ 325,963,800$ 310,551,750
332,100,000297,562,500

$ 15,412,050
34,537,500

= $ 0.445

Fix Cost
a

Y b X
n

$ 18,003( $ 0,445 x 17.250)

8

$ 18,003$ 7,676.25
8

$ 10,326.75
8

= $ 1,290.8

Cost formula for tanning service using the result from the method of least squares :
2. Predicted cost of tanning service for September
for 2,500 appoinments :
Y = $1,290.8
Y
=
$ 1,290.8 + ($ 0.455 x Tanning service for September)
=
$ 1,290.8+ ($ 0.445 x 2,500)
=
$ 1,290.8 + $ 1,112.5
=
$ 2,403.3

EXERCISE 14-41 SCATTERGRAPH, HIGH LOW METHOD, AND PREDICTING

COST FOR A DIFFERENT TIME PERIOD FROM THE ONE USED TO DEVELOP A
COST FORMULA
Month
1
2
3
4
5

Receiving
OrdersPesanan
1,000
700
1,500
1,200
1,300

Receiving Costs
($)
18,000
15,000
28,000
17,000
25,000

6
7
8
9
10
Total

1,100
1,600
1,400
1,700
900
12,400

21,000
29,000
24,000
27,000
16,000
220,000

1. Scattergraph of Receiving Activity

Scattegraph
40000
30000
Receiving Cost ($)

20000
10000
0
600

800 1000 1200 1400 1600 1800

Receiving Orders

Yes, the relationship appers to be linear

2. Cost formula for Receiving Activity using High-low methode

Variable Cost :
( $ 27,000$ 15,000 )
=
( 1,700700 )
= $12
Fix Cost :
a. Using High Point
= $ 27,000 ($ 12 x 1,700)
= $ 27,000 - $ 20,400
= $ 6,600
b. Using Low Point
= $ 15,000 ($ 12 x 700)
= $ 15,000 - $ 8,400
= $ 6,600
Cost Formula :
Y = $ 6,600 +

Predicted costs for a month with 1,450 receibing orders :

Y
=
$ 6,600 + ($12 x 1,450)
=
$ 6,600 + $ 17,400
=
$ 24,000

Problem 14-48 (APPENDIX) SCATTERGRAPH, HIGH LOW METHOD, METHOD OF

LEAST SQUARE, USE OF JUDGMENT
Quarter
1

Machine Hours
20,000

Power Cost ($)

26,000

25,000

38,000

30,000

42,500

22,000

37,000

21,000

34,000

18,000

29,000

24,000

36,000

28,000
188,000

40,000
282,500

8
Total
1. Scattergraph

Scattergraph
50,000
40,000
30,000
Biaya Mesin ($) 20,000
10,000
0
15,000

20,000

25,000

30,000

35,000

Jam Mesin

Yes, scattergraph show a linear relationship between machine hours and power costs

2. Using High-Low Method

a. Variable Cost
$ 42,500$ 29,000
=
30,00018,000
$ 13,500
12,000 = $ 1.125 per jam mesin

b. Fix Cost
Using High Point
= $ 42,500 ($ 1.125 x 30,000)
= $ 42,500 , $ 33,750
= $ 8,750
Using Low Point
= $ 29,000 ($ 1.125 x 18,000)
= $ 29,000 , $ 20,250
= $ 8,750
Cost Formula :
Y = $ 8,750 + $

3.
Quarter
1
2
3
4
5
6
7
8

X
20,000
25,000
30,000
22,000
21,000
18,000
24,000
28,000

Y ($)
26,000
38,000
42,500
37,000
34,000
29,000
36,000
40,000

Total

188,00
0

282,500

XY ($)
520,000,000
950,000,000
1,275,000,00
0
814,000,000
714,000,000
522,000,000
864,000,000
1,120,000,00
0
6,779,000,00
0

Y = a + bX

X2
400,000,000
625,000,000
900,000,000
484,000,000
441,000,000
324,000,000
576,000,000
784,000,000

Y2 ($)
676,000,000
1,444,000,000
1,806,250,000
1,369,000,000
1,156,000,000
841,000,000
1,296,000,000
1,600,000,000

4,534,000,000

10,188,250,00
0

Y = Total Cost
a = Fix Cost
b = Variable Cost
X = Activity Level

Variable Cost
2

X
2
n X
n XY X , Y

188,000 2
8 ( 4,534,000,000 )
8 ( $ 6,779,000,000 )(188,000 x $ 282,500)

$ 54,232,000,000$ 53,110,000,000
36,272,000,00035,344,000,000

$ 1,122,000,000
928,000,000

= $ 1.209

Fix Cost
a

Y b X
n

$ 282,500( $ 1.209 x 188,000)

8

$ 282,500$ 227,292
8

$ 55,208
8

= $ 6,901

Power Cost Formula :

Y1 = $ 6.901 + $
1,209X

Y1 = $

4. Drop the point (20,000 , $26,000) as an outlier

Quarter
2

X
25,000

Y ($)
38,000

XY ($)
950,000,000

X2
625,000,000

Y2 ($)
1,444,000,000

3
4
5
6
7
8

30,000
22,000
21,000
18,000
24,000
28,000

42,500
37,000
34,000
29,000
36,000
40,000

Total

188,00
0

282,500

1,275,000,00
0
814,000,000
714,000,000
522,000,000
864,000,000
1,120,000,00
0
6,779,000,00
0

900,000,000
484,000,000
441,000,000
324,000,000
576,000,000
784,000,000

1,806,250,000
1,369,000,000
1,156,000,000
841,000,000
1,296,000,000
1,600,000,000

4,534,000,000

10,188,250,00
0

Variable Cost
2

X
2
n X
n XY X , Y

168,000
7 ( 4,134,000,000 )
7 ( $ 6,259,000,000 ) (168,000 x $ 256,500 )

$ 43,813,000,000$ 43,092,000,000
28,938,000,00028,224,000,000

$ 721,000,000
714,000,000

= $ 1.009

Fix Cost
a

Y b X
n

$ 256,500( $ 1.009 x 168,000)

7

$ 256,500$ 169,512
7

$ 86,988
7

= $ 12,426

Power cost formula :

Y2 = $ 12.426 + $
1,009X

EXERCISE 22-15 PREPARING INCOME STATEMENTS UNDER ABSORPTION AND

VARIABLE COST
1. Cost of goods sold under absorption costing
Unit product cost with absorption costing :

Direct materials
Direct labor
Variable Overhead
Fixed Overhead per unit produced

$35
$65
$30
$20
$150

Cost of goods sold under absorption costing

= $150 x 14,000
= $2,100,000

2. Cost of goods sold under variable costing

Unit product cost with variable costing :
Direct materials
Direct labor
Variable Overhead

$35
$65
$30
$130

Cost of goods sold under variable costing = $130 x 14,000

= $1,820,000
3. Income statement using absorption costing
B&O Cafe
Absorption-Costing Income Statement
Sales ($200 x 14,000)
Less : Cost of goods sold
Gross Margin
Less : Selling and administrative expenses
Net Income

$2,800,000
$2,100,000
$700,000
$200,000
$500,000

4. Income Statement using variable costing

B&O Cafe
Variable-Costing Income Statement
Sales ($200 x 14,000)
Less : Variable cost of goods sold
Contribution Margin
Less fixed expenses :
Fixed overhead ($20 x 17000)
Fixed Selling and administrative expenses

$2,800,000
$1,680,000
$980,000
$340,000
$200,000

$540,000

Net Income

$440,000

EXERCISE 22-16 PREPARING A SEGMENTED INCOME STATEMENT

Trendy Inc.
Segmented Income Statement
For the Coming Year
Sweaters

Jackets

Total

Sales

$300,000

$420,000

$720,000

Variable Cost of goods sold

($180,000)

($200,000)

($380,000)

Variable selling expenses

($15,000)

($21,000)

($36,000)

$105,000

$199,000

$304,000

Direct fixed overhead

($25,000)

($40,000)

($65,000)

Direct selling and administrative

($20,000)

($50,000)

($70,000)

$60,000

$109,000

$169,000

Contribution margin
Less fixed expenses :

Segment Margin

Less Common fixed expenses :

Common fixed overhead

($45,000)

Common selling and administrative

($15,000)

Operating Income

$109,000

PROBLEM 22-32 VARIABLE AND ABSORPTION-COSTING INCOME

1. Per-unit Inventory costs that will be reported on SPIDER`s balance sheet at the end of the
year :
Direct Materials
Direct labor
Variable Overheard
Variable Selling
Fixed overheard
Per-unit Inventory cost

Unit in Ending Inventory

$2.45
$2.10
$0.25
$0.30
$0.9
$6

= (11,300 + 200,000) 208,000

= 3,300
Total Cost

= 3,300 x $6
= $19,800

2. Absortion-costing Income Cost :

Spider Company
Absorption-Costing Income Statement
Sales ($9 x 208,000)
Less :
Cost of goods sales ($6 x 208,000)
Gross margin
Less :
Selling and administrative expenses
Operating Income

$1,872,000
$1,248,000
$624,000
$56,000
$568,000

3. Per-unit Inventory under Variable Costing :

Direct Materials
$2.45
Direct labor
$2.10
Variable Overheard
$0.25
Variable Selling
$0.30
Unit product cost

$5.1

Variable costing stresses the difference between fixed and variable manufacturing costs.
Variable costing assigns only variable manufacturing costs to the product; these costs
include direct material, direct labor, and variable overhead. Fixed overhead is treated as
period expenses and is excluded from product cost. The rarionale for this treatment is that
fixed overhead is a cost of capacity, or staying in bussines. Once the period is over. Any
benefits provided by capacity have expired an shouldn`t be inventoried. Under variable
costing, fixed overhead of a period is seen as expiring that period and is charged in total
against the revenues of the period.

4. Variable-costing Income Statement

Spider Company

Variable-Costing Income Statement

Sales ($9 x 208,000)
Less :
Variable Cost of goods sales ($5.1 x 208,000)
Gross margin
Less :
Fixed Overhead
$180,000
Selling and administrative expenses
Operating Income

$1,872,000
$1,060,800
$811,200

$56,000
$575,200

5. Absurption Costing Income if Spider company had sold 196,700 units :

Spider Company
Absorption-Costing Income Statement
Sales ($9 x 196,700)
Less :
Cost of goods sales ($6 x 196,700)
Gross margin
Less :
Selling and administrative expenses
Operating Income

$1,770,300
$1,180,200
$590,100
$56,000
$534,100

Variable-costing Income if Spider company had sold 196,700 units :

Spider Company
Variable-Costing Income Statement
Sales ($9 x 196,700)
Less :
Variable Cost of goods sales ($5.1 x 196,700)
Gross margin
Less :
Fixed Overhead
Selling and administrative expenses
Operating Income

$1,872,000
$1,060,800
$811,200
$180,000
$56,000
$575,200

Problem 22-32 VARIABLE COSTING, ABSORPTION COSTING, SEGMENTED

INCOME STATEMENTS, INVENTORY VALUATION
1. Cost of SUGARSMOOTH`s ending Inventory in the first year under absorption costing :
Cost of goods sold
= Absorption unit product cost X Unit sold
$160,500
= Absorption unit product cost X 53,500
$ 160,500
Absorption unit product cost
=
53,500

= $3
Ending Inventory = Units Produced Units Sold
= 55,000 53,500
= 1,500

Cost of SUGARSOOMTH`s ending nventory under Absorption costing :

Value of ending Inventory

= $3 x 1,500
= $4,500

2. Cost of SUGARSMOOTH`s ending Inventory in the first year under Variable costing :
Cost of goods sold
= Absorption unit product cost X Unit sold
$160,500
= Absorption unit product cost X 53,500
$ 160,500
Absorption unit product cost
=
53,500
Absorption unit product cost

= $3

Variable Unit product cost

= Absorption unit product cost Fixed Overhead

= $3 - $0.5
= $2.5
Ending Inventory = Units Produced Units Sold
= 55,000 53,500
= 1,500
a. Cost of SUGARSOOMTH`s ending nventory under Variable costing :

Value of ending Inventory

= $2.5 x 1,500
= $3,750

b. SugarsMooth Inc. Variable costing Operating Income

Sugarsmooth Inc.
Variable-Costing Income Statement
Sales (53,500 x $8.50)
Less :
Variable Cost of goods sold ($2.5 x 53,500)
Gross margin
Less :
Fixed Overhead
Selling and administrative expenses
Operating Income

$454,750
$133,750
$321,000
$27,500
$120,000

$147,500
$173,500

3. Segmented Variable-costing Income statement for following year :

Sugarsooth Inc.
Segmented Income Statement
For the Following Year
Sales
Variable cost of
goods sold

Drug store
$199,750

Discount Stores
$135,000

Beauty Shop
$90,000

Total
$424,750

$11,750

$10,000

$5,000

$26,750

Contribution Margin

$188,000

Less Direct fixed Expenses :

Shipping
Clerk`s salary and benefit
Sales Commission
Extra packing expense
Segment Margin
$188,000

Add Return Penalties

Segment Income
Less Common fixed
Expense :
Fixed Overhead
Selling and administration
Expense

Operating Income

$125,000

$85,000

$398,000

$9,000
$5,000
$71,000

$45,000
$30,000
$9,000
$5,000
$309,000

$45,000
$30,000
$50,000

$1,350
$188,000

$51,350

$1,350
$71,000

$310,350

($27,500)
($120,000)

$162,850

4. Yes, all the customer group are profitable, Drugstore with $188,000 Income, Discounted
Store with $51,350 Income, and Beauty Shop with $71,000 Income.
According to Segmented Income Statement, it`s safe for Sugarsmooth to expend it`s
marketing base