5-30. Methods of Estimating Costs: High-Low Adriana Corporation manufactures football equipment. In planning for next year, the man- agers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations: Month a. 123456789OIE 10 11 Labor-Hours Machine-Hours Overhead Costs 3,625 6,77,5 7,035 3,575 3,400 7,600 3,700 do 7,265 3,900 7,955 3,775 7,895 3,700 6,950 6,530 7,270 7,725 6,490 8,020 3,625 3,550 3,975 3,375 3,550 $513,435 518,960 549,575 541,400 581,145 572,320 535,110 510,470 532, 195 565,335 503,775 564,210 Required lantelom foost Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. bearbavo tstof b. Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? excel mhhe.com/ia 5-31. Methods of Estimating Costs: Scattergraph sta 21200 astelsai houb Prepare a scattergraph based on the overhead and machine-hour data in Exercise 5-30.odal 5-32. Methods of Estimating Costs: Scattergraph Prepare a scattergraph based on the overhead and labor-hour data in Exercise 5-30. por sidsild 000.2e1 ad u iston og (LO 5- (8
5-30. Methods of Estimating Costs: High-Low Adriana Corporation manufactures football equipment. In planning for next year, the man- agers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations: Month a. 123456789OIE 10 11 Labor-Hours Machine-Hours Overhead Costs 3,625 6,77,5 7,035 3,575 3,400 7,600 3,700 do 7,265 3,900 7,955 3,775 7,895 3,700 6,950 6,530 7,270 7,725 6,490 8,020 3,625 3,550 3,975 3,375 3,550 $513,435 518,960 549,575 541,400 581,145 572,320 535,110 510,470 532, 195 565,335 503,775 564,210 Required lantelom foost Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. bearbavo tstof b. Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? excel mhhe.com/ia 5-31. Methods of Estimating Costs: Scattergraph sta 21200 astelsai houb Prepare a scattergraph based on the overhead and machine-hour data in Exercise 5-30.odal 5-32. Methods of Estimating Costs: Scattergraph Prepare a scattergraph based on the overhead and labor-hour data in Exercise 5-30. por sidsild 000.2e1 ad u iston og (LO 5- (8
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:5-30. Methods of Estimating Costs: High-Low
Adriana Corporation manufactures football equipment. In planning for next year, the man-
agers want to
the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or
both. The following data were collected from last year's operations:
yd
Month
b.
123456LBSOHE
7
8
10
11
Labor-Hours Machine-Hours Overhead Costs
3,625
6,77,5
3,575
7,035
3,400
7,600
3,700
7,265
3,900
7,955
3,775
7,895
3,700
6,950
3,625
6,530
3,550
7,270
3,975
7,725
3,375
6,490
3,550
8,020
$513,435
518,960
549,575
541,400
581,145
572,320
535,110
510,470
532,195
565,335
503,775
564,210
Required entry Pona
elsheim foa
Use the high-low method to estimate the fixed and variable portions of overhead costs
based on machine-hours.
(LO 5-4)
excel
mhhe.com/ianen4e
Managers expect the plant to operate at a monthly average of 7,500 machine-hours next
year. What are the estimated monthly overhead costs, assuming no inflation?
5-32. Methods of Estimating Costs: Scattergraph
Prepare a scattergraph based on the overhead and labor-hour data in Exercise 5-30.
ador sidsiled
boil
5-31. Methods of Estimating Costs: Scattergraph
Prepare a scattergraph based on the overhead and machine-hour data in Exercise 5-30. dsl
SIGHT
(LO 5-4)
(LO 5-4)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 4 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education