!!?? Yardley Systems expects to operate at 60,000 activity hours during the upcoming period, with lowerprobabilities of operating at 50,000 or 70,000 hours. The company's flexible budget revealed thefollowing:50,000 Hours 60,000 Hours 70,000 HoursVariable costs $325,000Fixed costs$860,000$390,000$860,000$455,000$860,000If Yardley operated at 55,000 activity hours, determine its total budgeted cost.

Concept of Variable Cost:Variable costs are expenses that change directly and proportionally with…

Answered: Yardley Systems expects to operate at…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 4CE: Foy Company has a welding activity and wants to develop a flexible budget formula for the activity....

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Similar questions

Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Help
Determine the total budgeted cost
A flexible budget prepared at the 70,000 machine hours level of activity would show total manufacturing overhead costs of
Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Clark produce during June? 10105 9295 Not enough information to determine 10750
Haroot Company's master budget shows that the planned activity level for next year is expected to be 20,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labour Factory supplies Indirect materials Depreciation on factory building Total manufacturing overhead $45,000 4,000 21,000 15,000 $85.000 If the company operates at 21,000 machine hours, how much is allowed on a flexible budget for manufacturing overhead costs? a. $89,250 b. 73,500 $88,500 C. d. $85,000
Jackson Company's expected activity level for next year is 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Indirect $140,000 materials Indirect labor 200,000 Factory supplies B) $360,000. C) $458,000. 20,000 D) $408,000. Depreciation $60,000 Taxes Supervision 10,000 A flexible budget prepared at the 80,000 machine hours level of activity would show total manufacturing overhead costs of how much? OA) $384,000. 50.000 Fixed
Brodrick Company expects to produce 21,700 units for the year ending December 31. A flexible budget for 21,700 units of production reflects sales of $542,500; variable costs of $65,100; and fixed costs of $143,000. If the company instead expects to produce and sell 27,300 units for the year, calculate the expected level of income from operations.

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