- (TCO 1) For each of the following drivers identify an appropriate activity.
- (TCO 2) Favata Company has the following information
Month Budgeted Sales
In addition, the cost of goods sold rate is 70% and the desired inventory level is 30% of next month's cost of sales.
Prepare a purchases budget for July through September.
- (TCO 3) As part of his job as cost analyst, Max Thompson collected the following information concerning the operations of the Machining Department:
Observation Machine-hours Total Operating Costs
January 4,000 $45,000
February 4,600 49,500
March 3,800 45,750
April 4,400 48,000
May 4,500 49,800
Use the high-low method to determine the estimating cost function with machine-hours as the cost driver.