Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rental fee and a per-copy charge. If the company makes 8,000 copies per month, the over- all per-copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it is estimated that the cost per copy is $0.19. 1. Using the high-low method, estimate the variable rate per copy and the annual rental fee. 2. If 9,000 copies were made in a month, compute the total cost.
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- Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 960 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June:Actual number of oil changes performed: 960Actual number of direct labor hours worked: 472 hoursActual rate paid per direct labor hour: $14.50Standard rate per direct labor hour: $14.00 Required: If required, round your answers to the nearest cent. 1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach. Direct labor rate variance (LRV) $______ Fvaorable or Unfavorable Direct labor efficiency variance (LEV) $_______ Favorable or Unfavorable 2. Calculate the total direct labor variance for…Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 30 minutes and 6.4 quarts of oil are used. In June, Guillermo's Oil and Lube had 1,000 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 1,000Actual number of quarts of oil used: 6,960 quartsActual price paid per quart of oil: $5.30Standard price per quart of oil: $5.25 1. What if the actual number of quarts of oil purchased in June had been 6880 quarts, and the materials price variance was calculated at the time of purchase? If required, round your answers to the nearest cent. What would be the materials price variance (MPV)? What would be the materials usage variance (MUV)?Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 20 minutes and 6.4 quarts of oil are used. In June, Guillermo's Oil and Lube had 920 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 920Actual number of quarts of oil used: 6,800 quartsActual price paid per quart of oil: $5.30Standard price per quart of oil: $5.20 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent. MPV $_______ Unfavorable MUV $______ Unfavorable 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. $__________ Unfavorable 3. What…
- Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 20 minutes and 6.6 quarts of oil are used. In June, Guillermo's Oil and Lube had 920 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 920Actual number of quarts of oil used: 6,580 quartsActual price paid per quart of oil: $5.00Standard price per quart of oil: $4.95 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent. MPV (Favorable/Unfavorable) MUV (Favorable/Unfavorable) 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent.…Alard Manufacturing Company has a billing department staffed by four billing clerks. Each clerk is paid 32,000 per year and is able to process 8,000 bills. Last year, 27,360 bills were processed by the four agents. Calculate the unused capacity in terms of number of bills. a. 27,360 b. 4,640 c. 8,000 d. 32,000Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month Number of Cavities Filled Total Cost January 575 $6,400 February 475 5,350 March 675 6,050 April 550 6,250 May 300 5,150 June 500 6,050 July 325 5,300 August 400 5,050 September 425 5,900 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate Mountain’s total cost for filling 350 cavities.
- Kim Epson operates a full-service car wash, which operates from 8 A.M. to 8 P.M. seven days a week. The car wash has two stations: an automatic washing and drying station that can handle 30 cars per hour and an interior cleaning station that can handle 210 cars per day. Based on a recent year-end review of operations, Kim estimates that future demand for the interior cleaning station for the seven days of the week, expressed in the average number of cars per day, would be as follows: Q i Kim should Day Cars should not Mon. 160 Tues. 180 Wed. 150 Thurs. 140 Fri. 260 By installing additional equipment (at a cost of $90,000) Kim can increase the capacity of the interior cleaning to 300 cars per day. Each car wash generates a pretax contribution of $5.00. Should Kim install the additional equipment if she expects a pretax payback period of three years or less? install the additional equipment because the payback period is years. (Enter your response rounded to two decimal places.) Sat. 270…Kim Epson operates a full-service car wash, which operates from 8 a.m. to 8 p.m., 7 days a week. The car wash has two stations: an automatic washing and drying station and a manual interior cleaning station. The automatic washing and drying station can handle 30 cars per hour. The interior cleaning station can handle 200 cars per day. Based on a recent yearend review of operations, Kim estimates that future demand for the interior cleaning station for the 7 days of the week, expressed in average number of cars per day, would be as follows: Day Mon. Tues. Wed. Thurs. Fri. Sat. Sun. Cars 160 180 150 140 280 300 250 By installing additional equipment (at a cost of $50,000), Kim can increase the capacity of the interior cleaning station to 300 cars per day. Each car wash generates a pretax contribution of $4.00. Should Kim install the additional equipment if she expects a pretax payback period of three years or less?Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Eastside 25,000 $ 510,000 8,100 Staff costs $ 99,000 Westside 6,250 $ 340,000 2,700 $ 153,000 General operating costs Total 31,250 $ 850,000 10,800 $ 252,000 $ 510,000 Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Required A Required B Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Center Surplus Eastside Westside
- Kim Epson operates a full-service car wash, which operatesfrom 8 a.m. to 8 p.m., 7 days a week. The car wash has two sta-tions: an automatic washing and drying station and a manualinterior cleaning station. The automatic washing and dryingstation can handle 30 cars per hour. The interior cleaningstation can handle 200 cars per day. Based on a recent year-end review of operations, Kim estimates that future demandfor the interior cleaning station for the 7 days of the week, expressed in average number of cars per day, would be asfollows:Day Mon. Tues. Wed. Thurs. Fri. Sat. Sun.Cars 160 180 150 140 280 300 250By installing additional equipment (at a cost of $50,000), Kimcan increase the capacity of the interior cleaning station to300 cars per day. Each car wash generates a pretax contribu-tion of $4.00. Should Kim install the additional equipment ifshe expects a pretax payback period of three years or less?Rooter's Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows: January February March April May June July Number of rooms cleaned 250 160 200 150 270 170 260 Cleaning cost $6,450 $4,060 $5,100 $4,100 $6,880 $4,200 $6,530 How much are estimated monthly variable costs using the high-low method? Round to two decimal places.Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Eastside 25,000 $ 330,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 220,000 2,700 $ 99,000 Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Predetermined overhead rate Total 31,250 $ 550,000 10, 800 Complete this question by entering your answers in the tabs below. $ 198,000 $ 330,000 per client Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your…