Solve this general accounting question not use ai Everest Manufacturing Ltd. wants to determine its variable cost per unit using theHigh-Low Method of cost estimation.The following data has been recorded:MonthMachine Hours Used Electricity CostHigh Capacity (March)60,000 hours$95,000$72,500Low Capacity (October) 35,000 hoursUsing the High-Low Method, calculate the variable rate per machine hour forelectricity costs.

To calculate the variable cost per machine hour using the High-Low Method, follow these steps: Step…

Answered: Everest Manufacturing Ltd. wants to…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...

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Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. March April May June Cost $3,100 2,700 2,900 3,600 Machine Hours 15.000 10,000 12,000 18,000
Data table Month Total Cost Machine Hours January.. 3,420 1,090 February..... S 3,760 1,120 March .... $ 3,532 1,080 April ..... 3,720 1,220 May S 4,800 1,330 June 4,192 1,480 .. %24 %24
Using the high-low method, how much is the electricity costs if the actual machine hours used is 2,800?
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to 27,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.30. On the basis of this information, the variable cost per machine hour was (Round your final answer to 2 decimal places): On the basis of this information, the fixed cost was (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount): On the basis of this information, what were total maintenance costs when the company experienced 25,000 machine hours? (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount.)
Rainbow Inc's products are given below. If the company's total labor capacity is 3200 hours/week, which of the products should be produced in a week? Regarding with this plan what will be the total sales and total variable costs of the firm per week? Labor Total Hour Price VC / Demand Product / Unit / Unit Unit (unit) ХС610 2 2,500 1,000 300 XD740 4 3,100 1,500 250 ZS650 3 1,850 750 400 ST340 2,250 975 500
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to 27,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.30. On the basis of this information, the variable cost per machine hour was (Round your final answer to 2 declmal places): On the basis of this information, the fixed cost was (Round your Intermedlate calculations to 2 declmal places final answer to nearest dollar amount): On the basis of this information, what were total maintenance costs when the company experienced 25,000 machine hours? (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount.)
Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.89 per unit, and the variable labor cost is $3.4 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $790,000 during a year in which total production is 355,500 units. What are the total costs for the year? c. If the selling price is $10.2 per unit, what is the NSI break-even on a cash basis?

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