The controller of Sandhill Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month January February March April May June Variable cost per machine hour Total Maintenance Costs Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Determine the fixed cost components using the high-low method. Fixed costs $2,825 3,210 3,852 4,815 3,424 5,476 Total Machine Hours 3,740 4,280 6,420 8,453 5,350 8,560 $ $

The controller of Sandhill Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month January February March April May June Variable cost per machine hour Total Maintenance Costs Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Determine the fixed cost components using the high-low method. Fixed costs $2,825 3,210 3,852 4,815 3,424 5,476 Total Machine Hours 3,740 4,280 6,420 8,453 5,350 8,560 $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jake's Roof Repair has provided the following data concerning its costs: Cost per Repair-Hour Fixed Cost per Month $ Wages and salaries Parts and supplies Equipment depreciation $ Truck operating expenses $ Rent $ Administrative expenses $ 21,100 2,750 5,780 4,660 3,840 $ 16.00 $ 7.20 $ 0.55 $ 1.70 $ 0.40 For example, wages and salaries should be $21,100 plus $16.00 per repair-hour. The company expected to work 2,600 repair-hours in May, but actually worked 2,500 repair-hours. The company expects its sales to be $48.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Need to make sure my notes coincide with this example problem from video. please include how you calculated each part. Thank you
Mema Company makes motorcycles. Management wants to estimate overhead costs to plan its operations. A recent trade publication revealed that overhead costs tend to vary with machine hours. To check this, they collected the following data for the past 12 months. (See the picture for the table) Compute for the: Use the High-low method to estimate the fixed and variable portion of overhead costs based on machine hours.
Ashavin
Connell Co. collects the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 10,000 $17,000 February 8,000 $13,500 March 9,000 $14,400 April 7,000 $12,500 Instructions: Compute the variable and fixed cost elements using the high-low method.
Sunland Co. gathered the following information on power costs and factory machine usage for the last six months: Power Cost Factory Machine Hours $28,390 15,800 36,069 21,400 32,895 18,700 ITT 26,235 15,100 23,890 13,500 20,700 Month January February March April May June Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. (a) Your answer is correct. What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Variable power costs $ (b) eTextbook and Media * Your answer is incorrect. 10.500 Fixed power costs What is the estimated fixed power cost each month? High 1.41 per factory machine hour 20,683 $ Low Attempts: 1 of 5 used
Uninder Company uses the high-low method to estimate the cost function. The information for 2017 is provided below: Machine-hours Labor Costs Highest observation of cost driver 550 $22,000 Lowest observation of cost driver 250 $13,000 What is the slope coefficient? Select one: a. $30.00 b. $40.00 c. $43.75 d. $52.00
Are the fixed costs as well as the 'other variable costs" included in the calculations of total overhead?
answer with all working like explanation , computation , formulation for all parts with steps answer in text a) Using the High-Low method calculate the fixed cost and the variable rate per unit. Round the variable rate to 2 decimal points. b) Show the cost equation for maintenance expense. c) If the expected production is estimated to be 40,000 units what would be the estimated maintenance expense be?
Benson Corporation estimated its overhead costs would be $22,500 per month except for January when it pays the $153,120 annual insurance premium on the manufacturing facility. Accordingly, the January overhead costs were expected to be $175,620 ($153,120 + $22,500). The company expected to use 7,900 direct labor hours per month except during July, August, and September when the company expected 9,100 hours of direct labor each month to build inventories for high demand that normally occurs during the Christmas season. The company's actual direct labor hours were the same as the estimated hours. The company made 3,950 units of product in each month except July, August, and September, in which it produced 4,550 units each month. Direct labor costs were $24.70 per unit, and direct materials costs were $10.00 per unit. Required a. Calculate a predetermined overhead rate based on direct labor hours. b. Determine the total allocated overhead cost for January, March, and August. c. Determine…
Peter Ltd manufactures and sells batteries. The cost data for the product are given below. The accountant told the President that he will prepare two different sets of income statements for thePresident’s review. The data are given as follows: Variable cost: Direct materials $6Direct labor $12Variable overhead $4Variable selling and administrative $3 Fixed cost per month: Fixed manufacturing overhead $240,000Fixed selling and administrative $180,000 The batteries sell for $40 per unit. Production and sales data for January are shown below. Units produced 30,000Units sold 26,000 Required:a. Prepare the absorption costing income statement.b. Prepare the variable costing income statement.c. Explain to the President the differences between the two income statements (if any) and the net income figures he should rely on.
44) Same information as before - You have collected the following information about activity and costs - Activity - Machine Cost - Utilities Month Hours March 2,400 $18,500 2,600 $19,750 April May 2,900 $23,740 $25,500 $18,350 $17,290 June 3,100 July August September 1,950 October 2,100 1,900 $17,150 3,150 $25,200 November 3,000 $24,100 Using the High-Low method and your answers from the two previous questions, what is the estimated cost for December if the machines run for 2,550 hours ?
Use the activity rate and usage information to determine the total activity cost and activity cost per unit for each product. If required, round the per unit answers to the nearest cent. Total Activity Cost Activity Cost Per Unit 66,810 ✓ 37,403 X 220.50 X 184.25 ✓ Elliptical machines Treadmill $