The management of Casablanca Manufacturing Corporation believes that machine-hours is anappropriate measure of activity for overhead cost Shown below are machine-hours and totaloverhead costs for the past six months:Machine-OverheadНoursCostJan150,000P339,000Feb140,000P328,000Mar160,000P350,000Apr130,000P319,500May170,000P362,500Jun200,000P400,000Assume that the relevant range includes all of the activity levels mentioned in this problem.If Casablanca expects to incur 185,000 machine hours next month, what will the estimatedtotal overhead cost be using the high-low method?

Solution:- Calculation of total overheads cost for 185,000 machine hours as follows:- First we need…

Answered: The management of Casablanca…

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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Company XYZuses labor hours to allocate its manufacturing overhead. The direct labor cost rate is $8 per direct labor hour. The company estimates that the number of labor hours to be used next month is 600,000 labor hours. The estimated variable overhead is estimated to be quarter of the direct labor cost rate. The estimated fixed overhead costs are $50,000. Calculate the predetermined overhead rate. a. 5.08 b. None of the given answers С. 4.08 d. 8.08 е. 2.08
em #6 of 16Tuscany Company estimated the following costs at the beginning of a particular year:OverheadDirect labor cost$3,680,000$920,000Tuscany uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost equals total direct labor hours worked multiplied by the wage rate.) The directlabor cost was $47,000 for the month of January. Determine the overhead applied for the month of January.Oa. $188,000b. $105,750Oc. $141,000d. $80,000
Subject: accounting
A company calculated the predetermined overhead based on an estimated overhead of $70,000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product B utilized 1,100 hours, what was the total amount of overhead assigned to the products? Group of answer choices A. $35,000 B. $30,800 C. $37,800 D. $68,600
1. Ibra Computer Co. sells computers and internet equipment. It has the following information for the year: Overhead cost Computer hours Direct labor hours Estimated RO.6,200,000 310,000 62,000 Actual R.O.4,500,000 90,000 150,000 Overhead is applied on the basis of direct labor hours. Instructions a. Compute the predetermined overhead rate. b. Determine the amount of overhead under or over-applied for the year.
The Double Door Corp has gathered the following data on its overhead and associated costs for the company’s most recent 12 months: Customer Mon Transactions Total Cost 1 2,100 $22,738 2 3,300 $34,388 3 3,100 $35,113 4 2,500 $27,623 5 2,700 $27,463 6 2,300 $27,888 7 1,500 $16,688 8 2,890 $29,133 9 2,495 $25,788 10 1,920 $21,836 11 3,450 $38,553 12 3,050 $34,220 Required: 1.) Using regression analysis, determine: a) the variable cost per order b) the fixed cost each month c) the estimated cost at a volume of 3,000 orders 2.) Based on the above analysis, is there a strong relationship between customer transactions and total cost.
The DAC-28155 company's total overhead cost at various levels of activity is presented below: Month March April May Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 42,500 $ 34,000 $ 51,000 $ 60,000 0 June Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) Supervisory salaries (considered fixed) Maintenance (considered mixed) Total overhead cost $16,000 $4,000 $14,000 $ 34,000 Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 5,000 machine hours? $16,500 $17,300 $16,800 $16,300
Task 9. The company produces product A. | Calculate the next month's costs, taking into account that the fixed overhead costs are planned in the amount of 1785 euros and the planned production quantity is 105 units. The table shows the product cost norms: Indicators/costs 1. Consumption of materials 2. Price per 1kg of material 3. Productivity of production workers 4. Hourly wage rate for production workers 5. Variable overheads Norms 0,6 kg. 24,00 € 1,6 units/h 7,00 € 11,00 €
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