A. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine hours.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? Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relationbetween 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.Labor-Hourn3,6253,5753,4003,7003,9003,7753,7003,6253,5503,9753,3753,550Month1.2.Machine-Hours6,7757,0357,6007,265955,ר7,8956,9506,5307,270725,ה6,4908,020Overhead Costs$513,435518,960549,575541,400581,145572,320535,110510,470532,195565,335503,775564,2103.4.6.101112Required:a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours.b. Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthlyoverhead costs, assuming no inflation?Complete this question by entering your answers in the tabs below.Required ARequired BUse the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round"Variable cost" answer to 2 decimal places.)Variable cost (per machine hour)Fixed costPreyNext

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Description: A. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine hours.B. Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthly overhead cos

Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

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Adriana Corporation manufactures football equipment. In planning for next year, the managers 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 Labor-Houra Machine-Hours Overhead Costs 6,775 7,035 7,600 7,265 7,955 7,895 6,950 6,530 7,270 7,725 6,490 8,020 1. 3,625 3,575 3,400 3,700 3,900 3,775 700,נ 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 2. 4. 7. 10 11 12 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. 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? Complete this question by entering your answers in the tabs below. Required A Required B Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round "Variable cost" answer to 2 decimal places.) Variable cost (per machine hour) Fixed cost

Adriana Corporation manufactures football equipment. In planning for next year, the managers 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 Labor-Houra Machine-Hours Overhead Costs 6,775 7,035 7,600 7,265 7,955 7,895 6,950 6,530 7,270 7,725 6,490 8,020 1. 3,625 3,575 3,400 3,700 3,900 3,775 700,נ 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 2. 4. 7. 10 11 12 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. 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? Complete this question by entering your answers in the tabs below. Required A Required B Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round "Variable cost" answer to 2 decimal places.) Variable cost (per machine hour) Fixed cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Click the icon to view the monthly data. a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costs = +xBillable Hours X Monthly Overhead Costs and Billable Hours Data (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Overhead Costs Billable Hours 0 $315,000 3,000 $365,000 4,000 $395,000 5,000 $447,000 6,000 $530,000 7,000 $550,000 8,000
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[The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost Month Units Sold Total Cost 1 324,500 $ 162,000 7 355,500 $ 245,564 2 169,500 105,750 8 274,500 156,250 3 269,500 210,100 9 75,100 60,500 4 209,500 104,500 10 154,500 135,125 5 294,500 206,000 11 6 194,500 116,500 12 98,500 104,500 98,500 77,150 Problem 18-1A (Algo) Part 1 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of variable cost per unit Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs High-Low method - Calculation of fixed costs Total cost at the low point Variable costs at the low point: Volume at the…
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A manager must decide between two machines. The manager will take into account each machine's operating costs and initial costs, and its breakdown and repair times. Machine A has a projected average operating time of 131 hours and a projected average repair time of 4 hours. Projected times for machine B are an average operating time of 61 hours and a repair time of 5 hours. What are the projected availabilities of each machine? (Round your answers to 3 decimal places.) Answer is complete but not entirely correct. Availability 0.952 0.945 Machine A Machine B
a) Compute the breakeven sales dollars of cach product assuming the same sales mix remains constant. b) Prepare an analysis showing whether Product Z should be eliminated. The amount of change to net income should be computed. c) Assume the current demand of cach product is same as the sales volume the company has for the year. Below is the machine processing time required for cach product. Product Machine processing time in hours i. How many units should the company produce for each product if there is a constraint of only 24.000 hours of machine processing time in the year. ii. Compute the highest possible net income camed by the company. 3 2 An accountant has prepared the folowing product-line income statement for the year: Product Tatal No of mts sokd 5,000 4,000 4,000 Saks Varible enpermes 200,000 S 120,000 100,000 S 60.000 40,000 S 20,000 60,000 40,000 20,000 Cotribution mangin 80,000 40,000 20,000 Fihed expenses Rert Depreciin 10,000 12,000 8,000 5.000 6,000 2,000 2,400 3,000…