company's total overhead cost at various levels of activity is presented below: Month Machine Hours Total Overhead Cost March 5,000 $32,500 April 4,000 $ 26,000 May 6,000 $ 39,000 June 9,000 $51,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $ 12,000 Supervisory salaries (considered fixed) $ 4,000 Maintenance (considered mixed) $ 10,000 Total overhead cost $ 26,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,400 machine hours? multiple choice $15,600 $14,800 $15,300 $14,400

company's total overhead cost at various levels of activity is presented below: Month Machine Hours Total Overhead Cost March 5,000 $32,500 April 4,000 $ 26,000 May 6,000 $ 39,000 June 9,000 $51,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $ 12,000 Supervisory salaries (considered fixed) $ 4,000 Maintenance (considered mixed) $ 10,000 Total overhead cost $ 26,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,400 machine hours? multiple choice $15,600 $14,800 $15,300 $14,400

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Description: company's total overhead cost at various levels of activity is presented below: Month Machine HoursTotal Overhead Cost March 5,000 $ 32,500 April 4,000 $ 26,000 May 6,000 $ 39,000 June 9,000 $51,000Assume that the overhead cost above consists of uti

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $351,232 and direct labor hours would be 43,904. Actual factory overhead costs incurred were $391,711, and actual direct labor hours were 51,004. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$16,321 overapplied b.$408,032 overapplied c.$16,321 underapplied d.$56,800 underapplied Aspen Technologies has the following budget data: Estimated direct labor hours 9,200 Estimated direct labor dollars $65,200 Estimated factory overhead costs $178,500 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is a.$19.40 b.$29.10 c.$15.52 d.$23.28
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Company has gathered the following information: Variable manufacturing overhead costs $12,240 Fixed manufacturing overhead costs $9,270 Normal production level in labour hours 9,000 Standard labour hours 9,500 During the year, 3,230 units were produced, 10,600 hours were worked, and the actual manufacturing overhead was $20,200. Actual fixed overhead totalled $9,290. Bonita applies overhead based on direct labour hours. (a) Calculate the total, fixed, and variable predetermined overhead rates. (Round calculations and final answer to 2 decimal places, e.g. 15.25.) Fixed predetermined ovehead rate $ per DL hour Variable predetermined ovehead rate $ per DL hour Total predetermined ovehead rate $ per DL hour
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Crosshill Company's total overhead costs at various levels of activity are presented below: Month April May June July Machine-Hours 70,000 60,000 80,000 90,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 60,000-machine-hour level of activity in May is as follows: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost Total Overhead Cost $200,200 $177,300 $223,100 $246,000 $ 48,000 21,000 108,300 $177,300 The company wants to break down the maintenance cost into its variable and fixed cost elements. Maintenance cost in July Required: 1. Estimate how much of the $246,000 of overhead cost in July was maintenance cost. (Hint: To do this, first betermine how much of the $246,000 consisted of utilities and supervisory salaries. Think about the behaviour of variable and fixed costs within the relevant range.) (Round the "Variable cost per unit" to 2 decimal places.)
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The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $2,340,000 and total direct labor costs would be $1,800,000. During May, the actual direct labor cost totaled $145,000 and factory overhead cost incurred totaled $192,100. Question Content Area a. What is the predetermined factory overhead rate based on direct labor cost? Enter your answer as a whole percent not in decimals. fill in the blank 1772e2fb3039fb1_1 % Question Content Area b. Journalize the entry to apply factory overhead to production for May. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area c. What is the May 31 balance of the account Factory Overhead—Blending Department? Amount: $fill in the blank 1ea1070e903a021_1 Debit or Credit? d. Does the balance in part (c) represent overapplied or underapplied factory…
company's total overhead cost at various levels of activity is presented below: Month March April May June Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 38,750 $ 31,000 $ 46,500 $ 55,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $8,000 Supervisory salaries (considered fixed) $5,000 Maintenance (considered mixed) $18,000 Total overhead cost $31,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,900 machine hours? ○ $29,600 $29,200 O $30,400 $29,900