The Controller for Truman Canoes Has Gathered the Following Cost

question 235

Essay

The controller for Truman Canoes has gathered the following cost and activity level information:

Required:
1.What is the total cost of producing 2,000 fiberglass canoes?
2.What is the variable cost of producing each fiberglass canoe?
3.Suppose the controller uses the average cost to predict total costs.What total cost would the controller calculate for 3,000 fiberglass canoes?
4.If the controller uses the cost equation to predict total costs,what total cost would the controller calculate for 3,000 fiberglass canoes?
5.Is there a difference between the forecasted total cost using average cost versus the cost equation? If there is a difference,what creates the difference? If there is no difference,when would there be a difference?

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Definitions:

Hard Disk

A data storage device used for storing and retrieving digital information using one or more rigid rapidly rotating disks coated with magnetic material.

Sign-in Screen

The first screen or page presented to users requiring them to enter their credentials to access a system or application.

User Account

A profile on a computer or online service that represents a user's identity and permissions.

Log-in

The process of gaining access to a computer system or application by entering a username and password.