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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A corporation's cost data is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense What is the amount of product costs, if 4,000 units are produced? Multiple Choice O O O O $57,200 $8,800 $44,400 $53,200 Cost per Cost per Unit Period $ 6.00 $ 3.35 $ 1.75 $ 1.00 $ 0.40 $ 8,800 $ 4,000
Question 5: The Information below is taken from production department of Salalah Company for April: The number of units produced is 10060. All amounts are in OMR. |Total Costs |500000 Variable Cost ? | 400000 Fixed Cost |Direct material cost |Total labor cost |Manufacturing Overhead ? 100000 90000 30000 Calculate: A. Find the missing information in the above table. Some values may not be applicable, explain. B. Calculate cost per unit C. Describe the production costs in the equation form Y =f+ vX, D. Assume Salalah intends to produce 10000 units next month. Calculate total production costs for the month
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Using the step method, how much of NUBD Corporation’s Utilities Department cost is allocated between Departments A and B?