Maintenance costs at a Whetsel Corporation factory are listed below: Machine-Hours Maintenance Cost March 3,157 48,548 April 3,080 47,830 May 3,135 48,340 June 3,065 47,720 Management believes that maintenance cost is a mixed cost that depends on machine hours. Use the high-low method to estimate the maintenance cost for the month of July assuming a level of activity of 3,150 machine hours. a. 48,485 b. 48,480 c. 48,483 d. 48,488

Maintenance costs at a Whetsel Corporation factory are listed below: Machine-Hours Maintenance Cost March 3,157 48,548 April 3,080 47,830 May 3,135 48,340 June 3,065 47,720 Management believes that maintenance cost is a mixed cost that depends on machine hours. Use the high-low method to estimate the maintenance cost for the month of July assuming a level of activity of 3,150 machine hours. a. 48,485 b. 48,480 c. 48,483 d. 48,488

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

See similar textbooks

Similar questions

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?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
Ans
The controller of further industries..accounting question
Beta manufacturing collected the following data solution general accounting question
Need help this question
The controller of Crane Production has collected the following monthly cost data for analyzing the behavior of electricity costs. TotalElectricity Costs TotalMachine Hours January $2,620 230 February 3,010 370 March 3,590 460 April 4,770 695 May 3,240 400 June 4,850 790 July 4,100 620 August 3,850 550 September 5,110 680 October 4,300 620 November 3,310 370 December 9,000 810 (a) Determine the fixed costs and unit variable costs using the high-low method. Total fixed costs $enter a dollar amount Variable cost per machine hour
The controller of Crane Production has collected the following monthly cost data for analyzing the behavior of electricity costs. TotalElectricity Costs TotalMachine Hours January $2,620 230 February 3,010 370 March 3,590 460 April 4,770 695 May 3,240 400 June 4,850 790 July 4,100 620 August 3,850 550 September 5,110 680 October 4,300 620 November 3,310 370 December 9,000 810 What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity cost $enter the electricity cost in dollars By what amount does this differ from June’s observed cost for 790 machine hours? Amount differ
The controller of Crane Production has collected the following monthly cost data for analyzing the behavior of electricity costs. TotalElectricity Costs TotalMachine Hours January $2,620 230 February 3,010 370 March 3,590 460 April 4,770 695 May 3,240 400 June 4,850 790 July 4,100 620 August 3,850 550 September 5,110 680 October 4,300 620 November 3,310 370 December 9,000 810 What electricity cost does the cost equation estimate for a level of activity of 460 machine hours? Electricity cost $enter the electricity cost in dollars By what amount does this differ from March’s observed cost for 460 machine hours? Amount differ $enter a dollar amount