Budgeted fixed indirect costs remain constant at $150,000 per month. During high-output months, variable indirect costs are budgeted at $120,000, and during low-output months, budgeted variable costs are $60,000. What are the respective high and low indirect cost rates if budgeted professional labour hours are 9,000 for high-output months and 4,000 for low-output months?

Budgeted fixed indirect costs remain constant at $150,000 per month. During high-output months, variable indirect costs are budgeted at $120,000, and during low-output months, budgeted variable costs are $60,000. What are the respective high and low indirect cost rates if budgeted professional labour hours are 9,000 for high-output months and 4,000 for low-output months?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 27BEB: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...

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Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Speedy Petes above. Assume that this information was used to construct the following formula for monthly delivery cost. TotalDeliveryCost=41,850+(12.00NumberofDeliveries) Required: Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations: 1. Calculate total variable delivery cost for January. 2. Calculate total delivery cost for January.
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Pizza Vesuvio on the previous page. Coefficients shown by a regression program for Pizza Vesuvios data are: Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor and the variable rate per employee hour. 2. Construct the cost formula for total labor cost. 3. Calculate the budgeted cost for next month, assuming that 675 employee hours are budgeted. (Note: Round answers to the nearest dollar.) Use the following information for Brief Exercises 3-17 through 3-20: Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:
Fixed costs remain constant at $450,000 per month. During high-output months variable costs are $300,000, and during low-output months variable costs are $125,000. What are the respective high and low indirect-cost rates if budgeted professional labor-hours are 24,000 for high-output months and 5,000 for low-output months? A. $31.25 per hour; $115.00 per hour B. $18.75 per hour; $25.00 per hour C. $31.25 per hour; $31.25 per hour D. $12.50 per hour; $115.00 per hour
A company predicts its production and sales will be 24,000 units. At that level of activity, its fixed costs are budgeted at $300,000, and its variable costs are budgeted at $246,000. If its activity level declines to 20,000 units, what will be its budgeted fixed costs and its variable costs?
H3. Show proper step by step calculation
3.3
Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Pizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected: Employee Hours Month January February March April May June July August Labor Cost $7,000 8,140 9,899 9,787 8,490 7,450 9,490 7,531 Coefficients shown by a regression program for Pizza Vesuvio's data are: 360 550 630 600 480 350 570 310. Intercept 4,497 X Variable 8.26 In your calculations, round the variable rate per employee hour to the nearest cent. Required: Use the results of regression to make the following calculations: 1. Calculate the fixed cost of labor. 17,430 X Calculate the variable rate per employee hour. 7.40 X per employee hour
Webster has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, P150,000; fixed overhead, P240,000. If Webster now revises its anticipated production slightly downward, it would expect: * A.total fixed overhead of P240,000 and a lower hourly rate for variable overhead. B.total fixed overhead of P240,000 and the same hourly rate for variable overhead. C. total fixed overhead of P240,000 and a higher hourly rate for variable overhead. D. total variable overhead of less than P150,000 and a lower hourly rate for variable overhead. E. total variable overhead of less than P150,000 and a higher hourly rate for variable overhead.
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Required information [The following information applies to the questions displayed below.) Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Fixed Element Variable Element Actual per Customer Total per Month for May $ 182,000 $ 110,300 $ 27,200 $ 32,600 Served $ 5,600 $ 1,600 Revenue $ 55,000 Employee salaries and wages Travel expenses Other expenses 850 $ 34,000 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? Amount of employee salaries and wages included in the flexible budget
1 Required information [The following information applies to the questions displayed below.] Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is 0.5 DLH per unit. The company reports the following for this period. \table[[,\table[[Flexible Budget],[at 80% Capacity]],\table[[Actual],[Results]]],[\table[[Production (in],[units)]],51,750,46,800],[Overhead,,],[\table[[Variable],[overhead]],$284,625,],[Fixed overhead,51,750,],[Total overhead,$336,375,328,100]] Compute the standard overhead rate. Hint: Standard allocation base at 80% capacity is 25,875DLH, computed as 51,750 units ×0.5DLH per unit. Compute the standard overhead applied. Compute the total overhead variance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) \table[[\table[[1. Standard overhead],[rate]],,],[\table[[2. Standard overhead],[applied]],,],[3. Overhead…