Belden Frozen Foods packages a variety of frozen meals and vegetables. In its Saratoga Street plant, the company packages fr corn only. The cost analyst at the Saratoga plant has conducted an analysis of the plant overhead cost accounts. Partial informat from the analysis, based on the month studied, is shown here: Variable Portion $ 55,240 20,040 34, 120 ?? Account Indirect labor Fixed Portion Supervision Maintenance $ 50,560 18,760 ?? 54,760 Depreciation From this information, the cost analyst used the account analysis method to derive a cost estimation equation of the form Total cost = Monthly fixed cost + (Variable cost per case x Number of cases) Using the newly derived equation, the cost analyst estimated overhead costs for the following two months: Production (cases) 80,000 100,000 Estimated Overhead Cost $ 293,640 326,440 Month 1 Month 2 In the month the study was conducted, the plant produced 90,800 cases. Required: a. What is the estimated variable overhead cost per case? Note: Round your answer to 2 decimal places. b. What is the estimated monthly fixed overhead cost? c. What was the fixed maintenance cost in the month the study was conducted? d. What was the variable depreciation cost in the month the study was conducted?
Belden Frozen Foods packages a variety of frozen meals and vegetables. In its Saratoga Street plant, the company packages fr corn only. The cost analyst at the Saratoga plant has conducted an analysis of the plant overhead cost accounts. Partial informat from the analysis, based on the month studied, is shown here: Variable Portion $ 55,240 20,040 34, 120 ?? Account Indirect labor Fixed Portion Supervision Maintenance $ 50,560 18,760 ?? 54,760 Depreciation From this information, the cost analyst used the account analysis method to derive a cost estimation equation of the form Total cost = Monthly fixed cost + (Variable cost per case x Number of cases) Using the newly derived equation, the cost analyst estimated overhead costs for the following two months: Production (cases) 80,000 100,000 Estimated Overhead Cost $ 293,640 326,440 Month 1 Month 2 In the month the study was conducted, the plant produced 90,800 cases. Required: a. What is the estimated variable overhead cost per case? Note: Round your answer to 2 decimal places. b. What is the estimated monthly fixed overhead cost? c. What was the fixed maintenance cost in the month the study was conducted? d. What was the variable depreciation cost in the month the study was conducted?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Belden Frozen Foods packages a variety of frozen meals and vegetables. In its Saratoga Street plant, the company packages frozen corn only. The cost analyst at the Saratoga plant has conducted an analysis of the plant overhead cost accounts. Partial information from the analysis, based on the month studied, is shown here:
| Account | Fixed Portion | Variable Portion |
|--------------------|---------------|------------------|
| Indirect labor | $50,560 | $55,240 |
| Supervision | $18,760 | $20,040 |
| Maintenance | ?? | $34,120 |
| Depreciation | $54,760 | ?? |
From this information, the cost analyst used the account analysis method to derive a cost estimation equation of the form:
Total cost = Monthly fixed cost + (Variable cost per case × Number of cases)
Using the newly derived equation, the cost analyst estimated overhead costs for the following two months:
| Production (cases) | Estimated Overhead Cost |
|--------------------|-------------------------|
| Month 1 | 80,000 | $293,640 |
| Month 2 | 100,000 | $326,440 |
In the month the study was conducted, the plant produced 90,800 cases.
**Required:**
a. What is the estimated variable overhead cost per case?
*Note: Round your answer to 2 decimal places.*
b. What is the estimated monthly fixed overhead cost?
c. What was the fixed maintenance cost in the month the study was conducted?
d. What was the variable depreciation cost in the month the study was conducted?
**Results:**
a. Estimated variable overhead cost: $1.64 per case
b. Estimated monthly fixed overhead cost: $162,440
c. Fixed maintenance cost:
d. Variable depreciation cost:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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