High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $420,000 at the 58,000-hour level and $380,000 at the 42,000-hour level. Compute the maintenance cost formula. Total cost = $Answer 1 + ($Answer 2 x direct labor hours) What cost might we expect at an operating level of 52,000 direct labor hours? $Answer 3

High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $420,000 at the 58,000-hour level and $380,000 at the 42,000-hour level. Compute the maintenance cost formula. Total cost = $Answer 1 + ($Answer 2 x direct labor hours) What cost might we expect at an operating level of 52,000 direct labor hours? $Answer 3

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

See similar textbooks

Similar questions

Cool Pool has these costs associated with production of 20,000 units of accessory products: direct materials, $70; direct labor, $110; variable manufacturing overhead, $45; total fixed manufacturing overhead, $800,000. What is the cost per unit under both the variable and absorption methods?
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
Webber fabricating estimated the following solve this question ❓
Provide correct solution
What is the fixed overhead costs of making the component
What would be the effect on operating income??
What is the production cost per unit?
Based on analyzing the relationship of total factory overhead (Y) to direct labor hours (X), the following relationship was found: Y = $2,000 + Ş$5X. The $5 in the equation represents: Select one: O a. Total variable factory overhead costs. O b. Variable factory overhead costs per direct labor hour. O c. None of the answers given O d. Fixed factory overhead costs per direct labor hour. O e. Total fixed factory overhead costs
Please Solve this MCQs Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.35 Direct labor $ 4.30 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 26,000 Sales commissions $ 0.80 Variable administrative expense $ 0.90 Fixed selling and administrative expense $ 6000 If the selling price is $22.10 per unit, the contribution margin per unit sold is closest to: $4.85 $3.15 $10.45 $7.15
What is variable overhead?