The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below: Machine-Hours Repair Costs April 2,148 $ 33,102 May 2,177 $ 33,120 June 2,134 $ 33,097 July 2,214 $ 33,120 August 2,119 $ 33,030 September 2,230 $ 33,184 October 2,145 $ 33,071 November 2,225 $ 33,157 Management believes that repair cost is a mixed cost that depends on the number of machine-hours. Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to: Multiple Choice $1.25 per machine-hour plus $30,387 per month $0.80 per machine-hour plus $31,953 per month $0.98 per machine-hour plus $30,978 per month 15.00 per machine-hour plus $33,917 per month
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below:
Machine-Hours Repair Costs
April 2,148 $ 33,102
May 2,177 $ 33,120
June 2,134 $ 33,097
July 2,214 $ 33,120
August 2,119 $ 33,030
September 2,230 $ 33,184
October 2,145 $ 33,071
November 2,225 $ 33,157
Management believes that repair cost is a mixed cost that depends on the number of machine-hours. Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:
Multiple Choice
$1.25 per machine-hour plus $30,387 per month
$0.80 per machine-hour plus $31,953 per month
$0.98 per machine-hour plus $30,978 per month
15.00 per machine-hour plus $33,917 per month
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