Meng Company is preparing a flexible budgetfor next year and requires a breakdown of the factorymaintenance cost into the fixed and variable elements.The maintenance costs and machine hours (the selected cost driver) for the past six months are asfollows:Maintenance costsMachine hoursJanuary15,5001,800February10,7201,230March15,1001,740April15,8402,190May14,8001,602June10,6001,5901. If Meng Company uses the high -low method of analysis, the estimated variable rate ofmaintenance costs per machine is?2. The average annual fixed maintenance costs amounts to?3. What is the average rate per hour at a level of 1,500 machine hours?As a part of a cost study, the cost accountant of Shinly Corporation has recorded the cost of operationsat seven different level of materials usage. The records show the following:Kilos of Materialscost of operations8080060480203201201,2001401.280404801001,0401. Using the high-low method, the variable cost of operations per kilo of materials is?2. Using the high-low method, the fixed cost of operations is?3. Using the least squares method, the average rate of variability per kilo of materials is?4. Using the least squares method, the fixed portion of the cost is?5. The projected cost of operations for 90 kilos of materials is?

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Meng Company is preparing a flexible budgetfor next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The maintenance costs and machine hours (the selected cost driver) for the past six months are as follows: Maintenance costs Machine hours January 15,500 1,800 February 10,720 1,230 March 15,100 1,740 April 15,840 2,190 May 14,800 1,602 June 10,600 1,590 1. If Meng Company uses the high -low method of analysis, the estimated variable rate of maintenance costs per machine is? 2. The average annual fixed maintenance costs amounts to? 3. What is the average rate per hour at a level of 1,500 machine hours?

Meng Company is preparing a flexible budgetfor next year and requires a breakdown of the factory maintenance cost into the fixed and variable elements. The maintenance costs and machine hours (the selected cost driver) for the past six months are as follows: Maintenance costs Machine hours January 15,500 1,800 February 10,720 1,230 March 15,100 1,740 April 15,840 2,190 May 14,800 1,602 June 10,600 1,590 1. If Meng Company uses the high -low method of analysis, the estimated variable rate of maintenance costs per machine is? 2. The average annual fixed maintenance costs amounts to? 3. What is the average rate per hour at a level of 1,500 machine hours?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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