Larkspur Manufacturing Company observed that, during its busiest month of 2022, maintenance costs totaled $18,500, resulting from the production of 40,000 units. During its slowest month, $13,000 in maintenance costs were incurred, resulting from the production of 25,000 units. Use the high-low method to estimate the maintenance cost that the company will incur if it produces 30,000 units. (Calculation in 2 decimal)

Larkspur Manufacturing Company observed that, during its busiest month of 2022, maintenance costs totaled $18,500, resulting from the production of 40,000 units. During its slowest month, $13,000 in maintenance costs were incurred, resulting from the production of 25,000 units. Use the high-low method to estimate the maintenance cost that the company will incur if it produces 30,000 units. (Calculation in 2 decimal)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

Lily Company uses a standard cost accounting system. In 2025, the company produced 28,300 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,900 direct labor hours. During the year, 131,200 pounds of raw materials were purchased at $0.94 per pound. All materials purchased were used during the year. (a) Your answer is correct. If the materials price variance was $1,312 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ (b) eTextbook and Media * Your answer is incorrect. 0.95 Standard materials quantity per unit If the materials quantity variance was $17,100 unfavorable, what was the standard materials quantity per unit? Attempts: 1 of 5 used -5.3 pounds
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $156,800 $195,200 $217,600 Insurance expense** 1,000 1,000 1,000 Depreciation expense 2,000 2,000 2,000 Property tax expense*** 500 500 500 *Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month.**Insurance expense is $1,000 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October).***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a.$120,600 b.$123,100 c.$121,100 d.$122,600
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $156,800 $195,200 $217,600 Insurance expense** 1,000 1,000 1,000 Depreciation expense 2,000 2,000 2,000 Property tax expense*** 500 500 500 *Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $1,000 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October).***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are Group of answer choices $120,600 $123,100 $121,100 $122,600
Vaibhav
Al-Can Products, Inc. estimates that it will build 5,000 benches next year. For this amount of production, total factory overhead is estimated to be $123,456.00. Estimated direct labor costs for next year are $256,190.00. Calculate the factory overhead applied rate for next year as a percentage of direct labor costs.
Need help with this problem (number 27). Need help with the blank data. Thanks!
Best, Inc. produced 1,000 units of the company's product in 2024. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.40 per yard. The accounting records showed that 2,700 yards of cloth were used and the company paid $1.45 per yard. Standard time was two direct labor hours per unit at a standard rate of $14.50 per direct labor hour. Employees worked 1,600 hours and were paid $13.50 per hour. Read the requirements. Requirement 1. What are the benefits of setting cost standards? Standard costing helps managers do the following D
Mixing Company manufactured 1,900 units of its only product during 2022. The inputs for this production are as follows: 490 pounds of Material A at a cost of $1.90 per pound 340 pounds of Material H at a cost of $3.15 per pound 460 direct labor hours at $36 per hour The firm manufactured 2,259 units of the same product in 2021 with the following inputs: 580 pounds of Material A at a cost of $1.60 per pound 450 pounds of Material H at a cost of $2.90 per pound 480 direct labor hours at $34 per hour The partial operational productivity of Material H in 2021 is:
Hanshaben
Murry, Inc. produced 1,000 units of company's product in 2024. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.35 per yard. The accounting records showed that 2,500 yards of cloth were used and the company paid $1.40 per yard. Standard time was two direct labor hours per unit at a standard rate of $12.00 per direct labor hour. Employees worked 1,700 hours and were paid $10.50 per hour. What are the benefits of setting cost standards? Calculate the direct materials cost variance and the direct material effeciency variance as well as the direct labor cost and effeciency variances.
Mixing Company manufactured 1,716 units of its only product during 2022. The inputs for this production are as follows: 520 pounds of Material A at a cost of $1.50 per pound 325 pounds of Material H at a cost of $2.75 per pound 580 direct labor hours at $48 per hour The firm manufactured 2,850 units of the same product in 2021 with the following inputs: 640 pounds of Material A at a cost of $1.90 per pound 500 pounds of Material H at a cost of $3.20 per pound 540 direct labor hours at $46 per hour In 2022, the partial financial productivity of Material H is:
On January 1, 2021, Petersen Enterprises purchased natural resources for $1,800,000. The company expects the resources to produce 12,000,000 units of product. What is the depletion cost per unit? (Round answer to 2 decimal places, e.g. 52.75.) Depletion cost per unit $ eTextbook and Media If the company mined and sold 20,000 units in January, what is depletion expense for the month? Depletion expense for January $ eTextbook and Media