Samuel Amo Tobin, the Executive of Tobinco Pharmaceutical Co., has asked for information about the cost behaviour of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: Month Machine Hours Support Costs Мay 1400 $12,500 June 1750 $13,500 July 1000 $7,900 August 850 $9,000 September 1250 $11,000 Find the monthly fixed support cost and variable support cost per machine hour using the high-low method. Develop the support cost function of Tobinco b. Pharmaceutical Co. Estimate the support cost if the machine hours are с. i. 3500 hours ii. 5070 hours

Samuel Amo Tobin, the Executive of Tobinco Pharmaceutical Co., has asked for information about the cost behaviour of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: Month Machine Hours Support Costs Мay 1400 $12,500 June 1750 $13,500 July 1000 $7,900 August 850 $9,000 September 1250 $11,000 Find the monthly fixed support cost and variable support cost per machine hour using the high-low method. Develop the support cost function of Tobinco b. Pharmaceutical Co. Estimate the support cost if the machine hours are с. i. 3500 hours ii. 5070 hours

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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Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,091       14,781       April 2,676       9,929       May 2,812       11,845       June 3,520       17,889       a.$0.49 b.$0.53 c.$0.11 d.$1.17
Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:   Month Machine Hours Electricity Costs January 2,500 $ 18,400 February 2,900 21,000 March 1,900 13,500 April 3,100 23,000 May 3,800 28,250 June 3,300 22,000 July 4,100 24,750 August 3,500 22,750 September 2,000 15,500 October 3,700 26,000 November 4,700 31,000 December 4,200 27,750    Summary Output Regression Statistics Multiple R 0.965 R Square 0.932 Adjusted R2 0.925 Standard Error 1,425.18 Observations 12.00 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 3,726.88 1,682.82 2.21 0.05 (22.69) 7,476.45 Machine Hours 5.77 0.49 11.7 0.00 4.67 6.87   The percent of the total variance that can be explained by the regression is:…
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Are the fixed costs as well as the 'other variable costs" included in the calculations of total overhead?
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Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,031 14,997 April 2,698 10,326 May 2,858 12,140 June 3,893 18,050 a.$0.15 b.$0.77 c.$1.55 d.$0.73
Do it on ms word file only thanku.