Exercise 18-3 (Part Level Submission)The controller of Norton Industries has collected the following monthly expense data for use in analyzing the costbehavior of maintenance costsTotalMaintenanceCostsTotalMonthJanuaryFebruaryMarchAprilMayJune$2,5902,8903,4904,3903,0905,530Machine Hours330380530660530730(a1)Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g12.250.)Variable cost per machine hour

Calculate the variable cost per machine hour:

Answered: Exercise 18-3 (Part Level Submission)…

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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Compute conversion costs given the following data: direct materials, $351,300; direct labor, $207,800; factory overhead, $189,700 and selling expenses, $46,300. a. $748,800 b. $143,400 c. $541,000 d. $397,500
Cost & Management Accounting AC336 Question 3 (13 Marks) Krypton Inc. manufactures two products, Vintex and Bromal. The company estimated it would incur $160,690 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labour hours. Data concerning the current period's operations appear below: Estimated Volume Direct labour hours per unit Direct labour cost per unit Direct material cost per unit Activity cost pool Material acquisition costs Machine costs General factory costs Required: Activity cost pool Material acquisition costs Machine costs General factory costs Vintex 4,700 units 2.1 hours Estimated overhead costs $33.60 $4.80 The company is considering using an activity-based costing system to compute unit product costs instead of its traditional single plant-wide system based on direct labour hours. The activity- based costing system would use three activity cost pools and drivers: Driver Purchase orders…
E7-2A Variable and Absorption Costing--Service Company Lawn RX, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Lawn RX provides a quarterly lawn care service that is sold for $140. The variable and fixed cost data are as follows: Direct labor $ 80 Overhead: Variable cost per unit $ 5 Fixed cost $ 100,000 Marketing, general, and administrative: Variable cost (per contract completed) $ 6 Administrative expense (fixed) (per month) $ 42,000 During 2019, 10,000 service contracts were signed and 9,800 service contracts were completed. Lawn RX had no service contracts at the beginning of the year.…
Required information Case 4-29 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2] [The following information applies to the questions displayed below.] O'Brien Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 570,000 $ 110,000 During its first year of operations, O'Brien produced 100,000 units and sold 74,000 units. During its second year of operations, it produced 76,000 units and sold 97,000 units. In its third year, O'Brien produced 81,000 units and sold 76,000 units. The selling price of the company's product is $77 per unit. Case 4-29 Part-1 (Algo) Required: 1. Assume the company uses variable costing and a FIFO inventory…
Required: Prepare a quantitative comparison of the traditional and activity-based cost assignments.
Exercise 11-29 (Algo) Cost Allocation: Direct Method (LO 11-2) University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Printing Developing Machine-hours — 1,800 1,800 4,200 Labor-hours 550 — 550 2,200 Department direct costs $ 2,000 $ 12,000 $ 13,600 $ 10,500 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation…
44) Same information as before - You have collected the following information about activity and costs - Activity - Machine Cost - Utilities Month Hours March 2,400 $18,500 2,600 $19,750 April May 2,900 $23,740 $25,500 $18,350 $17,290 June 3,100 July August September 1,950 October 2,100 1,900 $17,150 3,150 $25,200 November 3,000 $24,100 Using the High-Low method and your answers from the two previous questions, what is the estimated cost for December if the machines run for 2,550 hours ?
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ok t For each of the following independent cases (A to E), compute the missing values in the table: Case A C D E Prime Conversion Cost Cost $ 9,560 $ 16,470 $ 57,300 110,600 48,750 Direct Materials 3,950 10,130 41,500 20,500 Direct Manufacturing Labor Overhead 7,400 12,650 14,400 $ 10,860 25,200 24,300 Total Manufacturing Cost 42,730 69,250 57,500

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