Harnow Company manufactures drill presses. Based on past experience, Harnow has found that its total overhead cost can be represented by the following formula: Tot overhead cost = $35,500+ $1.25x, where x = number of machine hours. Last year, Harnow incurred 120,000 machine hours. Required: Enter all amounts as positive numbers. Round to the nearest cent. A. What was the total overhead cost incurred by Harnow last year? B. What was the total variable overhead cost incurred by Harnow last year? C. What was the total overhead cost per machine hour last year? Round the answer to two decimal places. D. What was the fixed overhead cost per machine hour last year? Round the answer to two decimal places. E. If Harnow incurs 140,000 machine hours next year, what will be the total overhead cost per machine hour? Round the answer to two decimal places.

Harnow Company manufactures drill presses. Based on past experience, Harnow has found that its total overhead cost can be represented by the following formula: Tot overhead cost = $35,500+ $1.25x, where x = number of machine hours. Last year, Harnow incurred 120,000 machine hours. Required: Enter all amounts as positive numbers. Round to the nearest cent. A. What was the total overhead cost incurred by Harnow last year? B. What was the total variable overhead cost incurred by Harnow last year? C. What was the total overhead cost per machine hour last year? Round the answer to two decimal places. D. What was the fixed overhead cost per machine hour last year? Round the answer to two decimal places. E. If Harnow incurs 140,000 machine hours next year, what will be the total overhead cost per machine hour? Round the answer to two decimal places.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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