4. Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine hours 70,000 60,000 80,000 90,000 Utilities (variable). Supervisory salaries (fixed)... Maintenance (mixed). Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these May month's costs at the 60,000 machine-hour level of activity is: Total O/H cost $205,000 $174,000 $235,000 $255.000 $ 42,000 $27,000 $ 105,000 Total overhead cost......... $174,000 1. Estimate how much of the $255,000 of overhead cost in July was maintenance cost. 2. Using the high-low method, estimate a cost formula for maintenance, and identify the maintenance cost for 120,000 machine hours

4. Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine hours 70,000 60,000 80,000 90,000 Utilities (variable). Supervisory salaries (fixed)... Maintenance (mixed). Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these May month's costs at the 60,000 machine-hour level of activity is: Total O/H cost $205,000 $174,000 $235,000 $255.000 $ 42,000 $27,000 $ 105,000 Total overhead cost......... $174,000 1. Estimate how much of the $255,000 of overhead cost in July was maintenance cost. 2. Using the high-low method, estimate a cost formula for maintenance, and identify the maintenance cost for 120,000 machine hours

Name: 4. Nova Company's total overhead cost at various levels of activity a
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 4. Nova Company's total overhead cost at various levels of activity are presented below:MonthAprilMayJuneJulyMachine hours70,00060,00080,00090,000Utilities (variable).Supervisory salaries (fixed).Maintenance (mixed)Assume that the total overhead cos

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow:. Estimated consulting overhead cost for the year $440,000 Estimated direct labor cost for the year (@ $9/hr.) 180,000 Actual manufacturing overhead cost for January 19,500 Actual direct labor cost for January (1,200 hours) 11,000 Assuming that direct labor hours is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. $ per direct labor hour b. Prepare a journal entry that applies consulting overhead for January. General Journal Description Debit Credit c. By what amount is consulting overhead over- or under applied in January?
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Overhead Overhead Annual Rate per Activity per Activity Usage Activity Machine Setups $157,850 4,100 $ Machine Hours 324,622 14,114 2$ Inspections 119,000 3,400
Another question
Bobby Pte Ltd charges manufacturing overhead to products by using a pre-determined overhead rate, computed on the basis of labour hours. The following data pertain to the current year:Budgeted manufacturing overhead $480,000Actual manufacturing overhead $440,000Budgeted labour hours 20,000Actual labour hours 16,000How much is overhead over-applied or under-applied, stating clearly whether it is over or under applied.
Subject : Accounting
Q) If July's estimated machine-hours are 4,500, calculate the total estimated operating costs of the Machining Department using the cost function in (a)?
- ok k int ences w 3 E Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) D Standard variable factory overhead rate per MH Standard MHS allowed for the units manufactured here to search Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2. What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way analysis (breakdown) of the total factory overhead cost variance: calculate the following factory overhead cost variances for October and indicate whether each variance is favorable (F) or unfavorable (U). a. Total flexible-budget variance. b. Production volume variance. c. Total overhead cost variance. 4. Calculate the production volume variance and indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers…
Har
All information included
sharad
Makkah Equipment Co. sells machines and has the following information for the year: Actual Estimated Overhead cost OMR 2,400,000 OMR 3,000,000 Direct labor hours 120,000 300,000 Machine hours 300,000 150,000 Overhead is applied on the basis of machine hours. The amount of manufacturing overhead to be applied is:
The levels of production and of manufacturing overhead for the first five months of 2009 for Apex Products are shown below. Units Produced Manufacturing Overhead January 11,500 $58,650 February 12,250 $59,413 March 11,125 $58,262 April 11,950 $59,140 May 10,750 $57,889 Using the high-low method, Apex monthly fixed overhead cost is closest to which of the following? A. $59,413 B. $12,495 C. $12,250 D. $46,918