Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 8,015 February 7,510 Miles Driven Total Cost $14,195 March 8,500 $15,000 13,515 April 8,205 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method. Arsons company is planning to produce 2,100 units of product in 2017. Each unit requires 1.60 pounds of materials at $6.40 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 60% of direct labor. A. Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. B. Compute the standard cost of one unit of production (round answer to 2 decimal places).

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Bruno Company accumulates the following data concerning a mixed cost,
using miles as the activity level.
Miles Driven Total Cost
January 8,015
February 7,510
Miles Driven Total Cost
$14,195
March 8,500
$15,000
13,515 April
8,205
14,495
a. Compute the variable cost per mile using the high-low method.
b. Compute the fixed cost elements using the high-low method.
Arsons company is planning to produce 2,100 units of product
in 2017. Each unit requires 1.60 pounds of materials at $6.40
per pound and a half-hour of labor at $16.00 per hour. The
overhead rate is 60% of direct labor.
A. Compute the budgeted amounts for 2017 for direct materials
to be used, direct labor, and applied overhead.
B. Compute the standard cost of one unit of production (round
answer to 2 decimal places).
Transcribed Image Text:Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 8,015 February 7,510 Miles Driven Total Cost $14,195 March 8,500 $15,000 13,515 April 8,205 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method. Arsons company is planning to produce 2,100 units of product in 2017. Each unit requires 1.60 pounds of materials at $6.40 per pound and a half-hour of labor at $16.00 per hour. The overhead rate is 60% of direct labor. A. Compute the budgeted amounts for 2017 for direct materials to be used, direct labor, and applied overhead. B. Compute the standard cost of one unit of production (round answer to 2 decimal places).
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