Problem 5A-8 (Algo) High-Low Method; Predicting Cost [LO5 - 10] Nova Company's totaloverhead cost at various levels of activity are presented below: Month Machine - Hours TotalOverhead Cost April 47,000 $ 201, 500 May 37,000 $ 175, 500 June 57,000 S 227, 500 July67,000 $ 253, 500 Assume the total overhead cost above consists of utilities, supervisorysalaries, and maintenance. The breakdown of these costs at the 37,000 machine - hour levelof activity is: Utilities (variable) S 51, 800 Supervisory salaries (fixed) 66, 000 Maintenance (mixed) 57,700 Total overhead cost $ 175, 500 Nova Company's management wants to breakdown the maintenance cost into its variable and fixed cost elements. Required: Estimate howmuch of the $253, 500 of overhead cost in July was maintenance cost. (Hint: To do this, it maybe helpful to first determine how much of the $253, 500 consisted of utilities and supervisorysalaries. Think about the behavior of variable and fixed costs.) Using the high-low method,estimate a cost formula for maintenance in the form Y = a + bx. Express the company'stotal overhead cost in the form Y = a + bX. What total overhead cost would you expect atan activity level of 42,000 machine - hours? Complete this question by entering your answersin the tabs below. Required 2 Required 3 Express the company's total overhead cost in theform Y = a + bx. Note: Do not round your intermediate calculations. Round the "Variablecost per machine hour" to 2 decimal places. Complete this question by entering your answers in the tabs below.Required 1Required 2 Required 3 Required 4Express the company's total overhead cost in the form Y = a + bx.Note: Do not round your intermediate calculations. Round the "Variable cost per machine hour" to 2 decimal places.Utilities costSupervisory salaries costMaintenance costTotal overhead costY =Variable Costper Machine-Hour$+Fixed Cost0.00 $0< Required 2Required 4 >

High low method is a technique of finding out the fixed and variable costs from the total cost…

Problem 5A-8 (Algo) High - Low Method; Predicting Cost [LO5-10] Nova Company's total overhead cost at various levels of activity are presented below: Month Machine - Hours Total Overhead Cost April 47,000 $ 201, 500 May 37,000 $ 175, 500 June 57,000 S 227,500 July 67,000 S 253, 500 Assume the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000 machine - hour level of activity is: Utilities (variable) $ 51, 800 Supervisory salaries (fixed) 66,000 Maintenance ( mixed) 57,700 Total overhead cost $ 175,500 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: Estimate how much of the $253, 500 of overhead cost in July was maintenance cost. (Hint: To do this, it may

Problem 5A-8 (Algo) High - Low Method; Predicting Cost [LO5-10] Nova Company's total overhead cost at various levels of activity are presented below: Month Machine - Hours Total Overhead Cost April 47,000 $ 201, 500 May 37,000 $ 175, 500 June 57,000 S 227,500 July 67,000 S 253, 500 Assume the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000 machine - hour level of activity is: Utilities (variable) $ 51, 800 Supervisory salaries (fixed) 66,000 Maintenance ( mixed) 57,700 Total overhead cost $ 175,500 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements. Required: Estimate how much of the $253, 500 of overhead cost in July was maintenance cost. (Hint: To do this, it may

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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The following information was gathered for the Greensprings Corporation for the most recent year. Manufacturing overhead is allocated using machine hours, Actual machine hours Allocated manufacturing overhead. Estimated manufacturing overhead costs Actual manufacturing overhead costs By how much is manufacturing overhead over or underallocated? A. $82,000 overallocated B. $82,000 underallocated OC. $8,000 underallocated OD. $8,000 overallocated 139,000 $1,130,000 $1,056,000 $1,138,000
EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $261,300 10 Selling expenses: Sales salaries and commissions 54,300 4 Advertising 18,400 Travel 4,100 Miscellaneous selling expense 4,500 4 Administrative expenses: Office and officers' salaries 53,100 Supplies 6,500 2 Miscellaneous administrative expense 6,040 2 Total $408,240 $54 It is expected that 8,640 units will be sold at a price of $135 a unit. Maximum sales within the relevant range are 11,000 units. Required: Question Content Area 1. Prepare an estimated income statement for 20Y7. Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7 $- Select - Cost of goods sold: $- Select - - Select - - Select -…
TB MC Qu. 4-49 Boesenhofer, Inc., manufactures and sells... Boesenhofer, Inc., manufactures and sells two products: Product N6 and Product N7. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Measures Cost Product N6 Product N7 Labor-related DLHS Total $345,060 128,534 107,598 2,100 600 4,100 Machine setups 5,000 800 3,800 setups 7,100 Order size MHs 1,400 7,900 $581,192 The activity rate for the Machine Setups activity cost pool is closest to: Multiple Cholce $73.57 per setup $91.81 per setup Prev of 36 Next > 10:54 AM 66°F Mostly cloudy 目。 21 10/20/2021 pe here to search DELL Home End Delete PgUp PgDn F12 PrtScr Insert F10 F11 F8 F9 F7 F4 F5 F6 F3 Num Lock Backspace & %23 %24
- ok k int ences w 3 E Overhead information for Cran-Mar Company for October follows: Total factory overhead cost incurred Budgeted fixed factory overhead cost Total standard overhead rate per machine hour (MH) D Standard variable factory overhead rate per MH Standard MHS allowed for the units manufactured here to search Required: 1. What is the standard fixed factory overhead rate per machine hour (MH)? 2. What is the denominator activity level that was used to establish the fixed factory overhead application rate? 3. Two-way analysis (breakdown) of the total factory overhead cost variance: calculate the following factory overhead cost variances for October and indicate whether each variance is favorable (F) or unfavorable (U). a. Total flexible-budget variance. b. Production volume variance. c. Total overhead cost variance. 4. Calculate the production volume variance and indicate whether the variance is favorable (F) or unfavorable (U). Complete this question by entering your answers…
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Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period 2. D E F Production (units) 1,500 2,500 14,000 Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3 2 Machine hours per unit 3 2 6 Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost 327,250 Handling cost 187,000 Machine cost 140,250 Inspection cost 280,500 935,000 Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…
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Using the step method, how much of NUBD Corporation’s Utilities Department cost is allocated between Departments A and B?
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