Cost Accounting42Problem 10estimateoverhead costs to plan its operations. A recent trade publication revealed thatoverhead costs tend to vary with machine hours. To check this, they collected thefollowing data for the past 12 months.ValdezMotors Co. makes motorcycles. Management wants toOverhead CostsP 4,5004,2254,3215,2504,8005,1004,4504,2005,4754,7604,3253,975Machine Hours175Month No.170316041901756.20071608.1509.210101801701112145Requirements1. Use the high-low method to estimate the fixed and variable portion ofoverhead costs based on machine hours.2. If the plant is planning to operate at a level of 200 machine hours nextperiod, what would be the estimated overhead costs?3. Use the method of least square to estimate the fixed and variable portion ofoverhead costs based on machine hours.

The question is based on the concept of Cost Accounting.

Problem 10 estimate Valdez Motors Co. makes motorcycles. Management wants to overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. To check this, they collected the following data for the past 12 months. Overhead Costs P 4,500 4,225 4,321 5,250 Machine Hours 175 Month No. 170 160 190 1.000 34

Problem 10 estimate Valdez Motors Co. makes motorcycles. Management wants to overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. To check this, they collected the following data for the past 12 months. Overhead Costs P 4,500 4,225 4,321 5,250 Machine Hours 175 Month No. 170 160 190 1.000 34

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

Please do not give solution in image format thanku
None
Please do not give solution in image format thanku
Kindly answer Requirements number 1, 2, and 3.
1 part 1
Figure 4 Steele Ltd. has the following information for January, February, and March 2011: Units produced Units sold January 10,000 7,000 February 10,000 March 10,000 8,500 10,500 Production costs per unit (based on 10,000 units) are as follows: Direct materials GHS12 Direct labour Variable factory overhead Fixed factory overhead Variable selling and admin. expenses Fixed selling and admin. expenses 4 10 4 There were no beginning inventories for January 2011, and all units were sold for GHS50. Costs are stable over the three months. 21. Refer to Figure 4. What is the January ending inventory for Steele Ltd. Using the variable costing method? a. GHS260,000 b. GHS78,000 c. GHS108,000 d. GHS90,000
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Please do not give solution in image format thanku
Problem 7-50 (Algo) Estimate Direct Labor Costs from Overhead Data (LO 7-2) Kenmore Fabrication estimated that direct labor cost for the year would be $645,600. The company also estimated that fixed overhead would be $484,200 and variable overhead would be 35 percent of direct labor cost. Kenmore applies its overhead on the basis of direct labor cost. During the year, all fixed overhead costs were exactly as planned ($484,200) and variable overhead was also Incurred as expected. There was $31,050 in underapplied overhead. Required: How much did Kenmore spend on direct labor cost during the period? Actual direct labor cost
Exercise 3 (Variable Costing Unit Product Cost and Income Statement; Break-even) PC Desk, Inc., makes an oak desk specially designed for personal computers. The desk sells for P2,000. Data for last year's operations follow: Units in beginning inventor.. Units produced.. Units sold. Units in ending inventory. 10,000 9,000 1,000 Variable costs per unit: Direct materials.. Direct labor Variable manufacturing overhead. Variable selling and administrative Total variable cost per unit. . P 600 300 100 200 P1,200 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative. Total fixed costs... P3,000,000 4,500,000 P7,500,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one computer desk. 2. Assume that the company uses variable costing. Prepare an income statement for the year using the contribution format. 3. What is the company's break-even point in terms of units sold?
Question 4.4 Dundar Mifflin makes electronic products for the RCMP. The following data is for the first six months: Direct Labor Hours Manufacturing Overhead $295,000 $320,000 January 45,000 60,000 57,000 52,000 February March $323,000 April May $247,250 $178,200 $162,500 34,000 June 25,000 Submission Instructions: 1. Use the high-low method to estimate the cost formula 2. Estimate the total overhead cost at an activity level of 48,000 machine hours, using the separate estimates you obtained for its components.