Buckeye Company has provided the following data for maintenance costs: Prior Year Current Year Machine hours 18,500 Maintenance cost $30,500 21,100 $34,140 Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are: a. $4,600 per year plus; $1.40 per machine hour b. $4,600 per year plus; $.714 per machine hour c. $30,500 per year plus; $1.40 per machine hour d. $29,540 per year plus; $.714 per machine hour

Buckeye Company has provided the following data for maintenance costs: Prior Year Current Year Machine hours 18,500 Maintenance cost $30,500 21,100 $34,140 Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are: a. $4,600 per year plus; $1.40 per machine hour b. $4,600 per year plus; $.714 per machine hour c. $30,500 per year plus; $1.40 per machine hour d. $29,540 per year plus; $.714 per machine hour

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost Multiple Choice Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: (Round your intermediate calculations to 2 decimal places.) O O Prior Year 17,100 20,100 $ 29,400 $ 34,200 $29,400 per year; $1.701 per machine hour Current Year $2,040 per year; $1.701 per machine hour $2,040 per year; $1.600 per machine hour $29,400 per year; $1.600 per machine hour
Buckeye Company has provided the following data for maintenance costs: Prior Year Current Year Machine hours 19,100 22,200 Maintenance cost $30,500 $34,220 Required: The best estimate of the cost formula for maintenance would be: (Do not round intermediate calculations. Round your Variable cost per unit to 2 decimal places.) a) $7,580 per year plus $.833 per machine hour. b) $26,640 per year plus $.833 per machine hour. c) $7,580 per year plus $1.20 per machine hour. d) $30,500 per year plus $1.20 per machine hour.
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Client-Visits 12,183 12,408 12,232 12,597 12,527 12,608 12,143 12,005 Supply Cost $26,642 $26,853 $26,675 $27,854 $26,988 $27,064 $26,585 $26,354 January February March April May June July August
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2. Tech Company has the following data for its maintenance costs: month Total Maintenance Costs Total Machine Hours January $2900 300 February 3000 400 March 3600 600 April 4300 790 May 3200 500 June 4500 800 Determine the fixed and variable cost using the high low method!
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Calculating and Using a Single Charging Rate The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $72,930 per year Variable costs (supplies): $1.30 per maintenance hour Estimated usage by: Assembly Department 4,900 Fabricating Department 6,200 Packaging Department 11.000 Total maintenance hours 22,100 Actual usage by: Assembly Department 3,425 Fabricating Department 6,300 Packaging Department 10,200 Total maintenance hours 19,925 Required: 1. Calculate a single charging rate for the Maintenance Department. Round your answer to the nearest cent. per maintenance hour 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments? when required, round your answers…