General accounting question and answer Premier Manufacturing gathered the following annual information ontotal production and total maintenance expenses:Year Total Production Total Maintenance Expenses2022 15,000 units2023 18,000 units$325,000$367,000In 2024, total production is forecasted to be 20,000 units. Using thehigh-low method, prepare an estimate of total maintenance expenses for2024, assuming total fixed costs and variable costs per unit are expectedto be the same in 2024 as in 2022 and 2023.

To estimate the total maintenance expenses for 2024 using the high-low method, we follow these…

Answered: Premier Manufacturing gathered the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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The financial manager of Orbit Limited provided the following forecasts for 2023:Sales are estimated at 8 000 units with a selling price of R1 800 each. The manufacturing costs include direct materials of R460 per unit, direct labour of R315 per unit, variable overheads of R170 per unit and fixed overheads of R880 000. Fixed selling and administration costs are estimated at R2 000 000 and the variableselling costs are estimated to be 7.5% of sales.The directors are contemplating diversification in 2024 by entering the passenger transport market. This couldbe achieved through the purchase of a fleet of midi buses that are expected to cost R9 500 000. An additional R500 000 will be spent on import duties. The cost of operating the buses each year is expected to be R4 100 000 and the annual revenues from transporting the passengers are estimated at R7 000 000. The buses are expected to have a total salvage value of R1 000 000 and the estimated useful life of the buses is fiveyears. The…
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