In your calculations, round the variable rate per employee hour to thenearest cent. If required, round your final answers to the nearest cent.Required:1. Using the high-low method, calculate the variable rate.15.80✔ per employee hour2. Using the high-low method, calculate the total fixed labor cost.$3. Using the high-low method, construct the cost formula for total labor cost.Total labor cost = $Ixx Employee hours]+ [$Feedback Using High-Low to Calculate the Variable Rate, Calculate Fixed Cost, and Construct aCost FunctionPizza Vesuvio makes specialty pizzas. Data for the past 8 months were collected:LaborEmployeeCost ($)HoursJanuary9,490February 7,000March7,531April8,140May9,787June8,490July13,416August 7,500Month560650690520600470770430Pizza Vesuvio's controller wants to calculate the variable and fixed costs associatedwith labor used in the restaurant.

High low method is one of the method used for cost estimation under which variable costs and fixed…

In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. 15.80 per employee hour 2. Using the high-low method, calculate the total fixed labor cost. 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ Ixx Employee hours] + [$

In your calculations, round the variable rate per employee hour to the nearest cent. If required, round your final answers to the nearest cent. Required: 1. Using the high-low method, calculate the variable rate. 15.80 per employee hour 2. Using the high-low method, calculate the total fixed labor cost. 3. Using the high-low method, construct the cost formula for total labor cost. Total labor cost = $ Ixx Employee hours] + [$

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,091 14,781 April 2,676 9,929 May 2,812 11,845 June 3,520 17,889 a.$0.49 b.$0.53 c.$0.11 d.$1.17
9.) If 12,500 units are sold, what is the total fixed manufacturing overhead costs to support this production level? 10.) If 12,500 units are sold, what is the fixed manufacturing overhead cost per unit sold? 11.) If 8,000 units are sold, what is the total manufacturing overhead costs to support this production level? What is the manufacturing overhead cost per unit?
help with part D please
APPLY THE CONCEPTS: Prepare a contribution margin income statement Assume that you are part of the accounting team for Starr Productions. The company has only one product that sells for $40 per unit. Starr estimates total fixed costs to be $3,700. Starr estimates direct materials cost of $12.00 per unit, direct labor costs of $15.00 per unit, and variable overhead costs of $3.00 per unit. The CEO would like to see what the gross margin and operating income will be if 600 units are sold in the next period. Prepare a contribution margin income statement. Starr Productions Contribution Margin Income Statement Sales Less: Variable costs Contribution margin Less: Fixed costs Operating income
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,093 14,645 April 2,668 10,463 May 2,846 11,922 June 3,779 18,072 a.$0.15 b.$0.98 c.$1.61 d.$1.02
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $138,000 Number of setups 120 Ordering materials 21,600 Number of orders 1,200 Machining 107,100 Machine hours 11,900 Receiving 16,740 Receiving hours 930 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 Units completed Number of setups Number of orders Machine hours Receiving hours Required: 6,800 310 Model X Model Y Model Y 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned
Bader receives OMR 8 for every hour worked in a Halwa manufacturing company is an example of a. Fixed Cost O b. Variable cost c. Semi variable Cost d. Overhead
Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 8,015 February 7,510 $14,195 13,515 Miles Driven Total Cost March 8,500 $15,000 April 8,205 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method.
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate compl 2. Compute the contribution margin per unit. [assume direct labor is a fixed cost] 3. Compute the contribution margin per welding hour. [assume direct labor is a fixed cost] 4. Assuming direct labor is a fixed cost: a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. b. What is the increase (decrease) in net operating income that would result from this plan over current operations? 5. Compute the contribution margin per unit. [assume direct labor is a variable cost] 6. Compute the contribution margin per welding hour. [assume direct labor is a variable cost] 7. Assuming direct labor is a variable cost: a. Determine the number of WVD drums (if any) that should be purchased and the number of WVD drums and/or bike frames (if any) that should be manufactured. b.…
answer with all working like explanation , computation , formulation for all parts with steps answer in text a) Using the High-Low method calculate the fixed cost and the variable rate per unit. Round the variable rate to 2 decimal points. b) Show the cost equation for maintenance expense. c) If the expected production is estimated to be 40,000 units what would be the estimated maintenance expense be?
Benson Corporation estimated its overhead costs would be $22,500 per month except for January when it pays the $153,120 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $175,620 ($153,120 + $22,500). The company expected to use 7,900 direct labor hours per month except during July, August, and September when the company expected 9,100 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,950 units of product in each month except July, August, and September, in which it produced 4,550 units each month. Direct labor costs were $24.70 per unit, and direct materials costs were $10.00 per unit. Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August. c. Determine…
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,031 14,997 April 2,698 10,326 May 2,858 12,140 June 3,893 18,050 a.$0.15 b.$0.77 c.$1.55 d.$0.73