Need Answer of this Accounting Question From April 1 through October 31, Will County Highway Department hires temporaryemployees to mow and clean the right-of-way along county roads. The County RoadCommissioner has asked you to help her in determining the variable labor cost ofmowing and cleaning a mile of road. The following information is available regardingcurrent-year operations:MonthMiles Mowed and Cleaned Labor CostsApril350$8,000May3007,500June4009,000July2505,500August 3758,500September 2005,000October1004,800Use the information from the high- and low-volume months to develop a cost-estimatingequation for monthly labor costs.

Step 1: Concept of High and Low Volume Method:This type of method is used by the manufacturing units…

Answered: From April 1 through October 31, Will…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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Scatter Diagrams and High-Low Cost EstimationFrom April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month Miles Mowedand Cleaned LaborCosts April 350 $16,000 May 300 15,000 June 400 18,000 July 250 11,000 August 375 17,000 September 200 10,000 October 100 9,600 a. Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = Answer + Answer X b. Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = Answer + Answer X d.…
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month April May June July August September October Miles Mowed Labor and Cleaned Costs 240 $6,800 305 7,680 325 8,310 275 7,200 220 6,550 200 5,760 75 4,960 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs $ 0+ $ 0X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs. Monthly labor costs $ 0 + $ ox Adjust the equation developed in requirement (b) to incorporate the…
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month April May June July August September October Miles Mowed Labor and Cleaned Costs 240 $6,800 305 7,680 325 8.310 275 7,200 220 6,550 200 5,760 75 4,960 Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = $ 3,955 ✓ + $ 13.4 ✔ X Plot the data on a scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost-estimating equation for monthly labor costs. Monthly labor costs - $ 8,310 x S 13.4 x x Adjust the equation developed in…
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Will County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed Labor Costs 350 $4,000 300 3,750 400 4,500 250 2,750 375 4,250 200 2,500 100 2,400 Month and Cleaned April May June July August September October Use the information from the high- and low-volume months to develop a cost-estimating equation for monthly labor costs. Monthly labor costs = $ 1700 + $ 7 X Plot the data on scatter diagram. Using the information from representative high- and low volume months, use the high-low method to develop a cost- estimating equation for monthly labor costs. Monthly labor costs = $ $ X Adjust the equation developed in requirement (b) to incorporate the…
D.7.
- 20. Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employ- ees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Miles Mowed and Cleaned Labor navior, Activity Analysis, anu Costs 240 $6,800 7,680 8,310 7,200 305 Month 325 275 April May. 220 6,550 June 200 5,760 July. August September . October. 75 4,960 REQUIRED Use the information from the high- and low-volume months to develop a cost-estimatine equation for monthly labor costs. b. Plot the data on a scatter diagram. Using the information from representative high- and low- volume months, use the high-low method to develop a cost-estimating equation for monthly а. What factors might have caused the difference in the equations developed for…
Jeff Boyer, of Rainking Company, designs and installs austom lawn and garden irrigation systems for homes and businesses throughour the state. Each job is different, requiring diffierene materials and labor for installing the systems. Rainking estimared the following for the year: Number of installations 250 5,000 క,000 S75,000 S65,000 Number of direct labor hours Direct materials cost Direcr labor cost Overhead cost During the year, the following actual amounts were experienced: Number of installacions 245 5,040 S59.350 $75,600 S64,150 Number of direct labor hours Direct materials used Direct labor incurred Overhead incurred Required: 1. Should Rainking use process costing or job-order costing Explain. 2. IF Rainking uses a normal costing system and overhead is applied on the basis of direct labor hours, what is the cost of an installation that takes $3,500 of direct materials and 50 direct labor hours? 3. Explain why Rainking would have difficulty using an actual costing system.
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Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain, which will require special-order, sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December.Raw materials were requisitioned from the company’s inventory on December 2 for $5,091; on December 8 for $1,050; and on December 14 for $3,495. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52.Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $17.5 per hour. The time tickets were dated December 3, December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52.The predetermined overhead rate is based on machine hours. The expected…
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December. Raw materials were requisitioned from the company's inventory on December 2 for $6.294; on December 8 for $1,308; and on December 14 for $4,284. In each instance, two- thirds (2/3) of these materials were for J57 and the rest for KS2. Six time tickets were turned in for these two projects for a total amount of 18 hours of work. All the workers were paid $16.50 per hour. The time tickets were dated December 3. December 9, and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52. The predetermined overhead rate is based on machine hours. The estimated…

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