Given the following costs and activities for Dance Company, usethe high-low method to calculate Dance's variable electricalcosts per machine hour.Costs Machine HoursAugust$11,700 15,000September 13,200 17,500October 11,400 14,500

Step 1: Definition of High-Low MethodThe high-low method is a cost estimation technique that helps…

Answered: Given the following costs and…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

See similar textbooks

Similar questions

A company manufacturing two products furnishes the following data Annual output Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 4,50,000 Set up related costs 9,20,000 Purchase related costs 5,18,000 Total 1,888,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
Dhapa
Ho Cabinet Company has developed the following overhead cost formulas: Overhead Cost Cost Formula Depreciation $600 Lubrication $150 plus $0.70 per machine hour Utilities $0.50 per machine hour Based on these cost formulas, the total overhead cost expected for Ho Cabinet Company if 1,200 machine hours are worked is:
From your readings and videos, you learned about cost estimation using the high low method. A company has captured two sets of data to estimate maintenance cost. Using the information below, estimate total maintenance should activity level reach 8,700 machine hours. Machine Maintenance Hours Cost per Machine Hour 10,000 8,000 $0.20 $0.25 Hi Low Select one: O a, $3,450 O b. $2,450 O c. $1,000 O d. $2,000 O e. $500
Calculate the overhead allocated to each customer using the simple costing method. (Round your answers to the nearest whole dollar.
Cost account prob. solution need
ABC Company has an ABC system with three pools: Total cost in cost pool Total $13,000 Activity Product X Machine setups Customer service Maintenance Cost Driver Product Y #setups #orders machine- hours $6,000 $10,000 Compute total capacity costs allocated to product X. Group of answer choices $29,000 $9,000 $18,500 $5,000 not enough information Activity volume (#cost driver units) 45 15 25 20 65 5 20 25 50
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Rex Industries data Activity Machine setups Machine hours Inspections Overhead per Activity $155,000 352,800 120,750 Annual Usage 4,000 14,112 3,500 Overhead Rate per Activity $ Complete the chart and compute the overhead rate for each activity. Round to the nearest penny, two decimal places.
in Feed | LinkedIn studenthomeworks.... Hours Calculator: S... Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290. Oa. $384,200 Ob. $731,700 Oc. $187,900 Od. $543,800 Chock M. Marl البال ghmentSessionLocator=&inprogress=false Login to Applicant... 3 BMTX: Card Status South University Disney+ | Movies a... W a O 2 46°F Previous 4x » (? Next ENG 10:09 PM US 3/25/2023
Sensor Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: LOADING... (Click the icon to view the costs.) Direct materials $7.00 Direct labor 2.00 Variable overhead 8.00 Fixed overhead 6.50____________________________ Manufacturing product cost $23.50__________________________ _________________________________ LOADING... (Click the icon to view additional information.) Another company has offered to sell Sensor Systems the switch for $19.00 per unit. If Sensor Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether Sensor Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing…
Crystal Pools estimates overhead will utilize 200,000 machine hours and cost $800,000. It takes 3 machine hours per unit, direct material cost of $13 per unit, and direct labor of $22 per unit. What is the cost of each unit produced? Cost per unit $fill in the blank 1
Life Force Fitness, Inc., assembles and sells treadmills. Activity-based product information for each treadmill is as follows: Activity Activity-Base Usage(hrs. per unit) X Activity Rateper Hour = Activity Cost Motor assembly 1.50 $20 $30.00 Final assembly 1.00 18 18.00 Testing 0.25 22 5.50 Rework 0.40 22 8.80 Moving 0.20 15 3.00 Activity cost per unit $65.30 All of the activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order to remain competitive. Rework involves disassembling and repairing a unit that fails testing. Not all units require rework, but the average is 0.40 hours per unit. Presently, the testing is done on the completed assembly; but much of the rework has been related to motors, which can be tested independently prior to adding the motor…

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

SEE MORE TEXTBOOKS

Given the following costs and activities for Dance Company, use the high-low method to calculate Dance's variable electrical costs per machine hour. Costs Machine Hours August $11,700 15,000 September 13,200 17,500 October 11,400 14,500