Summit Industries' activities for the first quarter of2023 are as follows:January: 4,000 machine hours, $7,800 electricalcost• February: 4,500 machine hours, $8,600 electricalcost• March: 5,200 machine hours, $9,800 electricalcostUsing the high-low method, calculate the cost permachine hour.

Step 1: Definition of High-Low MethodThe high-low method is a cost estimation technique used to…

Answered: Summit Industries' activities for the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of capacity the next month, will a different cost per unit be charged to the work-in-process account each month for factory overhead assuming that a predetermined annual overhead rate is used?
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
The manufacturing costs of Mocha Industries for three months of the year are as follows: April May June Total Cost $54,546 57,092 61,082 Production 1,670 Units 2,340 3,390 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. $ per unit b. Using the high-low method, determine the total fixed costs. $
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $98,908 1,180 Units May 101,540 1,650 June 105,740 2,400 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.$ per unit b. Using the high-low method, determine the total fixed costs.$
The controller of Cullumber Production has collected the following monthly cost data for analyzing the behavior of electricity costs. January February March April May June July August September October November December (a) Total Total Electricity Costs Machine Hours $2,480 2,900 Total fixed costs 3.520 4,780 3,220 5,000 4,090 3,810 5.110 4,270 3,320 5,840 Variable cost per machine hour $ 210 $ 340 500 685 420 750 650 510 Determine the fixed costs and unit variable costs using the high-low method. 675 600 340 770
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost $71,260 73,735 77,585 April May June Production 1,120 units 1,570 units 2,270 units a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit LA b. Using the high-low method, determine the total fixed costs.
The manufacturing costs of Mocha Indusstries for three months of the year are as follows: Total Cost Production April $63,100 1,100 units May 80,920 1,800 June 100,900 2,600 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit b. Using the high-low method, determine the total fixed costs. %24 %24
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $102,926 1,860 Units May 105,960 2,600 June 110,798 3,780 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.$fill in the blank 1 per unit b. Using the high-low method, determine the total fixed costs.$fill in the blank 2
What are the estimated direct labor costs?
Given the following costs and activities for Alpha Manufacturing, use the high-low method to calculate Alpha's variable electrical costs per machine hour. • March: Cost = $9,800, Machine Hours = 12,500 . = April: Cost $11,200, Machine Hours = 15,400 = May: Cost $10,500, Machine Hours = 13,900
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $114,550 2,140 Units May 121,000 3,000 June 131,050 4,340 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.$ fill in the blank 1 per unit b. Using the high-low method, determine the total fixed costs.$ fill in the blank 2

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