Question Content Area Strait Co. manufactures office furniture. During the most productive month of the year, 3,600 desks were manufactured at a total cost of $82,000. In the month of lowest production, the company made 1,180 desks at a cost of $61,400. Using the high-low method of cost estimation, total fixed costs are a. $61,400 b. $82,000 c. $51,364 d. $20,600
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Question Content Area
Strait Co. manufactures office furniture. During the most productive month of the year, 3,600 desks were manufactured at a total cost of $82,000. In the month of lowest production, the company made 1,180 desks at a cost of $61,400. Using the high-low method of cost estimation, total fixed costs are
a. $61,400b. $82,000c. $51,364d. $20,600
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- The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year Machine Hours 18,000 6,000 Busiest month (June) Slowest month (December) What are the direct labor costs per machine hour? Multiple Choice $21.50 $17.25 Direct Labor Costs $285,000 $129,000Required information Skip to question [The following information applies to the questions displayed below.] O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 16 Variable manufacturing overhead $ 3 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 590,000 Fixed selling and administrative expenses $ 190,000 During its first year of operations, O’Brien produced 96,000 units and sold 73,000 units. During its second year of operations, it produced 84,000 units and sold 102,000 units. In its third year, O’Brien produced 80,000 units and sold 75,000 units. The selling price of the company’s product is $80 per unit. Required: 1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means…The following data are used for questions 3 to 12 The Big Book Company builds wooden bookshelf wall units. The company's standard costs are: Wood Trim Direct labor Variable overhead Fixed overhead 25 pounds at P6.40 per pound 8 pounds at P10.00 per pound 5 hours at P12.00 per hour P 30.00 per unit P.130,000 per period, applied at the rate of P20.00 per unit A recent month's transactions were: 160,000 pounds of wood were purchased at P6.50 per pound; 50,000 pounds of trim were purchased at P9.60 per pound. 155,000 pounds of wood were issued to production; 48,500 pounds of trim were issued to production. Direct labor incurred was 31,000 hours at an average cost of P 11.50 per hour. Overhead costs were P302,000, of which P 181,000 were variable. Six thousand units were produced during the month.
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- Required information Skip to question [The following information applies to the questions displayed below.] John Boyd Corporation manufactures and sells 1,000 tractors each month. The primary component in each tractor is the motor. John Boyd has the monthly capacity to produce 1,300 motors. The variable costs associated with manufacturing each motor are shown below: Direct materials $ 24 Direct labor $ 16 Variable manufacturing overhead $ 29 Fixed manufacturing overhead per month (for up to 1,300 units of production) averages $27,000. Joan Reid, Inc. has offered to purchase 200 motors from John Boyd per month to be used in its own outboard motors. Assuming John Boyd wants to earn a pretax profit of $10,000 on this special order, what price must it charge Joan Reid?8) Paine Company wishes to determine the fixed portion of its electrical costs (a mixed cost). Management believes that the variable portion of the electrical costs is driven by machine-hours. Information for the previous three months follows: January February March Machine-hours Electrical cost 33,000 31,000 34,000 A) $283. B) $375. (C) $327. D) $408. $600 $585 $610 Using the high-low method, the fixed portion of the company's electrical costs would be estimated to be closest to:Prime Cost and Conversion Cost Grin Company manufactures digital cameras. In January, Grin produced 3,750 cameras with the following costs: Direct materials $1,000,000 Direct labor 104,000 Manufacturing overhead 768,000 There were no beginning or ending inventories of WIP. Required: If required, round your answers to the nearest cent. 1. What was the total prime cost in January?$fill in the blank 1 2. What was the prime cost per unit in January?$fill in the blank 2per unit 3. What was the total conversion cost in January?$fill in the blank 3 4. What was the conversion cost per unit in January? $fill in the blank 4per unit
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