AT&T; 5:00 PM ezto.mheducation.com Question 1 (of 2) 3.00 points Mountain Dental

Question

AT&T; 5:00 PM ezto.mheducation.com Question 1 (of 2) 3.00 points Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months Number of Cavities Flled Total Cost s 5,600 6,000 4,500 4.100 4,500 3,200 3,500 4,900 Apri 425 450 300 375 550 575 July Required 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Fixed Cost Variable Cost per 2Using these estimates, calculate Mountain's total cost for filling 500 cavities.

Explanation / Answer

Mountain Dental Service Details Highest Value Lowest Value Difference No Of Cavities Filled                        700                         300                   400 Total Cost                    6,000                      3,200               2,800                      -        1 Variable cost= Difference in Cost/Difference in No of cavities=2800/400= $                  7.00 per cavity filled Total Variable cost at 300 cavities filled                    2,100 Total cost at 300 cavities filled                    3,200 So Fixed cost =                    1,100      2 Total Cost for filling 500 cavities a. Variable cost @$7/ cavity=                    3,500 b. Fixed cost                    1,100 Total Cost for filling 500 cavities                    4,600 Dance Creations      1 Variable cost per unit of Skirt   Details Details Amt $ Direct Materials                        9.60 Direct Labor                      3.40 Variable Manufacturing Overhead                      1.05 Total Manufacturing Cost per unit                    14.05      2 Dance Creations Income Statement Contribution Margin Format for the period ending Details Amt $/Unit Total Amt $ Sales Revenue 30                   41,250 Less Variable costs of Goods Direct Material Cost                      9.60                   13,200 Direct Labor cost                      3.40                      4,675 Variable Manufacturing Overhead                      1.05                      1,444 Variable cost of Goods Sold                    14.05                   19,319 Add Variable Selling & Admin Cost                      0.40                         550 Total Variable cost of Sales                    14.45             19,868.75 Contribution Margin                    15.55             21,381.25 Less Fixed costs Fixed Manufacturing Overhead                   15,875 Fixed Selling & Admin Costs                      4,950 Total Fixed Costs                   20,825 Net Operating Income                         556 ( Images are blurred , used best judgement to capture data)      3 Absorption Costing Anufacturing Cost Units Produced                    1,500 Details Amt $/unit Total Direct Materials                        9.60                   14,400 Direct Labor                      3.40                      5,100 Variable Manufacturing Overhead                      1.05                      1,575 Fixed Manufacturing Overhead                           -                     15,875 Total Manufacturing Cost                   36,950 Manufacturing Cost/Unit $                 24.63      4 Dance Creations Income Statement Absorption Costing format for the period ending Details Amt $ Sales Revenue $       41,250.00 Cost Of Goods Sold @24.63/unit $       33,870.83 Gross Profit $          7,379.17 Selling & Admin Expenses $          5,500.00 Net Operating Income $          1,879.17

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