Wilson Company recorded the following activity over six months. The highest level of machine hours was 3,000, with a corresponding electrical cost of $2,200. The lowest level of activity was 1,800 machine hours, and the electrical cost for that month was $1,480. Using the high-low method, what is the fixed portion of the monthly electrical cost? a. $760 b. $190 c. $400 d. $280

Wilson Company recorded the following activity over six months. The highest level of machine hours was 3,000, with a corresponding electrical cost of $2,200. The lowest level of activity was 1,800 machine hours, and the electrical cost for that month was $1,480. Using the high-low method, what is the fixed portion of the monthly electrical cost? a. $760 b. $190 c. $400 d. $280

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 28E: Assume that the inspection activity has an expected cost of 120,000. Expected direct labor hours are...

See similar textbooks

Similar questions

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?
What is the overhead rate? Accounting
Precision Company estimates its machine-hour requirements for the four quarters to be 35,000 hours, 20,000 hours, 15,000 hours, and 30,000 hours respectively. The variable manufacturing overhead rate is $4 per machine-hour. The fixed manufacturing overhead is $50,000 per quarter, which includes $20,000 of depreciation expense. Knowledge Check 02 What is the predetermined overhead rate for the year? O $2 per machine hour O $4 per machine hour $5 per machine hour O $6 per machine hour
The Tom Corporation forecasts that total overhead for the current year will be $1,500,000 and that total machine hours will be 12,500 hours. Year to date, the actual overhead is $950,000, and the actual machine hours are 18,000 hours. If Tom Corporation uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate? a. $100 per machine hour b. $120 per machine hour c. $80 per machine hour d. $150 per machine hour
What would be the average fixed inspection
What is the companys plant-wide overhead rate?
The manufacturing costs of Mocha Industries for three months of the year are as follows: April May June Total Cost $54,546 57,092 61,082 Production 1,670 Units 2,340 3,390 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. $ per unit b. Using the high-low method, determine the total fixed costs. $
The manufacturing costs of Mocha Industries for three months of the year are as follows: Month Total Cost Production April $79,092 1,440 units May 80,136 2,020 units June 81,756 2,920 units a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.fill in the blank 1 of 1$ per unit b. Using the high-low method, determine the total fixed costs.
West Company estimates that overhead costs for the next year... Can you please answer the general accounting question?
The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost Production April $98,908 1,180 Units May 101,540 1,650 June 105,740 2,400 a. Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places.$ per unit b. Using the high-low method, determine the total fixed costs.$
Wyckam Manufacturing Inc. has provided the following information concerning its manufacturing costs: Fixed Cost per Month Direct materials Direct labor $ 42,600 Supplies Utilities Depreciation Insurance $ 1,800 $ 14,600 $ 11,400 Required: Cost per Machine-Hour $ 5.40 $0.30 $ 0.10 For example, utilities should be $1,800 per month plus $0.10 per machine-hour. The company expects to work 4,100 machine-hours in June. Note that the company's direct labor is a fixed cost. Complete the company's planning budget for manufacturing costs for June.
Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is a.$48 per machine hour b.$45 per machine hour c.$50 per machine hour d.$62 per machine hour