ACCT majors or anyone who's good in managerial acct

[bksze]

i have a few problems with my assignment, it's due in 4 hrs, can anyone pm me with a contact so that i can ask some questions hahaa . . . or msn me

[email protected]

thx

[B17a]

Originally posted by bksze
i have a few problems with my assignment, it's due in 4 hrs, can anyone pm me with a contact so that i can ask some questions hahaa . . . or msn me

[email protected]

thx

Whats' the prob?

[sexualbanana]

yeah, acct sux ass

[bksze]

i'm doin a master budget right now

first problem . . . if given this

Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed , or the variable rate. Previous years experience has provided the following information:

lowest level of sales: 750 000 units
total operating expenses: $1 306 500

highest level of sales: 1 500 000 units
total operating expenses: $1 779 000

(hint: this is for the whole year and these costs are in addition to the rental costs mentioned above.) These costs are paid in the month they occur.

how do i break it into the fixed portion and the variable portion of the cost???

thx, problem one of many to come

[B17a]

Originally posted by bksze
i'm doin a master budget right now

first problem . . . if given this

Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed , or the variable rate. Previous years experience has provided the following information:

lowest level of sales: 750 000 units
total operating expenses: $1 306 500

highest level of sales: 1 500 000 units
total operating expenses: $1 779 000

(hint: this is for the whole year and these costs are in addition to the rental costs mentioned above.) These costs are paid in the month they occur.

how do i break it into the fixed portion and the variable portion of the cost???

thx, problem one of many to come

You're trying to budget what fixed and variable costs are going to be? Usually the best indicator is the past, your fixed costs are going to be things like salaries, rent, utilities, while you're variable costs are all the inputs, assuming this is a manufacturing business. I think we need more info here. Sorry.

[bksze]

well what i gave is the past . . . i'm trying to break just the selling and admin expenses into a fixed and variable cost so that i can break it down into month by month amounts . . .

[bksze]

k here's the following links

http://www.bksze.com/toyworks%20budget.xls

that's what i have so far

here is the actual assignment

http://www.bksze.com/budgetassignmentfall2002.doc

thx in advance if anyone can help me haha

[bksze]

COME ON haha, i'll pay!!!

[5gluder]

I sort of remember this, i think there is supposed to be a general percentage for these. ie: admin is 60% and sales are 40%

[bksze]

i wish it were that easy haha . . . no general percentages for my assignment but thx for the help . . . any help is much appreciated

[mwmhong]

Originally posted by bksze
i'm doin a master budget right now

first problem . . . if given this

Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed , or the variable rate. Previous years experience has provided the following information:

lowest level of sales: 750 000 units
total operating expenses: $1 306 500

highest level of sales: 1 500 000 units
total operating expenses: $1 779 000

(hint: this is for the whole year and these costs are in addition to the rental costs mentioned above.) These costs are paid in the month they occur.

how do i break it into the fixed portion and the variable portion of the cost???

thx, problem one of many to come

The high low method of analyzing fixed costs takes the high and low costs and production levels and divides the change in them to recieve the variable cost. To find the fixed cost you take the total high or low cost and sutract it from the variable cost element.

The high-low method of analyzing mixed costs is based on costs observed at both the high and low levels of activity within the relevant range. The difference in cost observed at the two extremes is divided by the change in activity between the extremes in order to determine the amount of variable cost involved.

So it goes:

($1,779,000-$1,306,500)/(1,500,000 units-750,000 units)
equals

$0.63 variable cost per unit.

Plug this into the above equations to VERIFY:

High output year:
1,500,000 units*$0.63=$945,000 total variable cost
$1,779,000-$945,000 (Var. cost)=$834,000 Fixed cost

Low output year:

750,000 units*$0.63=$472,500 total variable cost
$1,306,500-$472,500=$834,000 Fixed cost

BOth high and low check out with fixed cost at $834,000 and variable cost at $0.63 per unit using the high-low method


***NOTE:I didn't take into account the 'RENT' that they mention, I couldn't see it anywhere in the question.****


Now, where's my MONEY????

[bksze]

that is exactly what i was looking for
i just couldn't find it in my textbook

i'll give you money if you can finish the rest?? hahahahahaha

no but next time i'll make sure i buy you a round of beers!!

thx eh

[max_boost]

Dam I hate Accounting with a passion! haha

And MWMhong, sounds like your the man for Accounting! I will contact you next semester! haha

[mwmhong]

Originally posted by max_boost
Dam I hate Accounting with a passion! haha

Me too.

I actually had to get that explanatory text (in italics) from google, it's been so long since I took Managerial (ACCT323?) and I don't have my books anymore.

[B17a]

Originally posted by mwmhong


Me too.

I actually had to get that explanatory text (in italics) from google, it's been so long since I took Managerial (ACCT323?) and I don't have my books anymore.

323 was the one and only course I ever took a W in! Booourns to 323.