Quick answer of this accounting questions The Acme Manufacturing Company uses the high-low method for its cost equation. Datafrom the past year:Machine Hours Direct CostsPeriodPeak (March) 16,500Low (August) 11,000$825,000$660,000If Acme plans to use 13,500 machine hours next month, what are the estimated direct laborcosts?

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

Answered: The Acme Manufacturing Company uses 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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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?
Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and administrative costs next year. Direct labor costs at 5 per hour are expected to total 50,000. If factory overhead is to be applied per direct labor hour, how much overhead will be applied to a job incurring 20 hours of direct labor? a. 120 b. 260 c. 28 d. 140
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?
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A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
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What will be overhead rate per hour?

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The Acme Manufacturing Company uses the high-low method for its cost equation. Data from the past year: Machine Hours Direct Costs Period Peak (March) 16,500 Low (August) 11,000 $825,000 $660,000 If Acme plans to use 13,500 machine hours next month, what are the estimated direct labor costs?