ZuoTi.Pro
Question

The Missou Manufacturing Company recorded overhead costs of $14,352 at an activity level of 5,050 machine...

The Missou Manufacturing Company recorded overhead costs of $14,352 at an activity level of 5,050 machine hours and $7,902 at 2,470 machine hours. The records also indicated that overhead of $9,815 was incurred at 2,770 machine hours. What is the total estimated cost for 2,770 machine hours using the high-low method to estimate the cost equation?

$6,925.

$9,815.

$8,652.

$7,902.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(14352-7902)/(5050-2470)

=$2.5 per machine hour

Hence total fixed cost=14352-(2.5*5050)=1727

Hence total estimated cost=Total fixed cost+Total variable cost

=1727+(2.5*2770)

=$8652

NOTE:Total fixed costs and variable cost per unit do not change with change in units

0 0
Add a comment
Know the answer?
Add Answer to:
The Missou Manufacturing Company recorded overhead costs of $14,352 at an activity level of 5,050 machine...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • TB MC Qu. 5-46 The Macon Company uses the high-low... The Macon Company uses the high-low...

    TB MC Qu. 5-46 The Macon Company uses the high-low... The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours 20,000 8,000 Busiest month (June) Slowest month (December) Direct Labor Costs $250,000 $ 127,000 If Macon expects to use 14,500 machine hours next month, what are the estimated direct labor costs? O $172,000. O $179,125. $193,625. $148,625. O The Missou Manufacturing Company recorded overhead costs of $14,202...

  • Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total...

    Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost      April 54,000    $188,180        May 44,000    $163,980        June 64,000    $212,380        July 74,000    $236,580   Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000-machine-hour level of activity in May is as follows:   Utilities (variable) $ 52,800     Supervisory salaries (fixed) 44,000   Maintenance (mixed) 67,180   Total overhead cost $ 163,980 The...

  • Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total...

    Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost      April 54,000    $188,180        May 44,000    $163,980        June 64,000    $212,380        July 74,000    $236,580   Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000-machine-hour level of activity in May is as follows:   Utilities (variable) $ 52,800     Supervisory salaries (fixed) 44,000   Maintenance (mixed) 67,180   Total overhead cost $ 163,980 The...

  • X Company uses the high-low method to estimate total overhead costs each month, with machine hours...

    X Company uses the high-low method to estimate total overhead costs each month, with machine hours as the activity measure. The following past monthly cost and activity information is available: Cost Month May June July August $10,733 $8,973 $12,603 $14,253 Machine Hours 3,100 2,300 3,950 4,700 If machine hours in October are expected to be 4,000, what are estimated fixed overhead costs in October (round unit costs to two decimal places)? OA: $2,443 B: $2,858 C: $3,344 D: $3,913|| OE:...

  • January February March April Machine Hours 5,900 3,200 4,900 2,600 Manufacturing Overhead $ 300,000 224,000 263,800...

    January February March April Machine Hours 5,900 3,200 4,900 2,600 Manufacturing Overhead $ 300,000 224,000 263,800 190,000 a-1. Use the high-low method to determine the variable element of manufacturing overhead costs per machine-hour. (Round your answer to 2 decimal places.) a-2. Use the high-low method to determine the fixed element of monthly overhead cost. b. Bursa expects machine-hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May's manufacturing overhead costs. c. Suppose Bursa...

  • Ronda Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead....

    Ronda Manufacturing Corporation uses a standard cost system with machine-hours as the activity base for overhead. Last year, Ronda incurred $840,000 of fixed manufacturing overhead and generated a $42,000 favorable fixed manufacturing overhead budget variance. The following data relate to last year’s operations: Denominator activity level in machine-hours 21,000 Standard machine-hours allowed for actual output 20,000 Actual number of machine-hours incurred 22,050 What amount of total fixed manufacturing overhead cost did Ronda apply to production last year? Multiple Choice: A)...

  • Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably...

    Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: Level of Activ Low 51,000 High 68,000 Direct labor-hours Total factory overhead costs 267,200 $299,500 The factory overhead costs above consist of indirect materials, rent, and maintenance. The...

  • Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably...

    Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: Level of Activ Low 51,000 High 68,000 Direct labor-hours Total factory overhead costs 267,200 $299,500 The factory overhead costs above consist of indirect materials, rent, and maintenance. The...

  • Nova Company's total overhead cost at various levels of activity are presented below: Total Machine-Overhead Month...

    Nova Company's total overhead cost at various levels of activity are presented below: Total Machine-Overhead Month April May June July Cost Hours 49,000190,590 39,000 $165,490 59,000215, 690 69,000 240,790 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 50,700 49,000 65,790 $165,490 Nova Company's management wants to break down the maintenance...

  • Nova Company's total overhead cost at various levels of activity are presented below: Total Machine-Overhead Month...

    Nova Company's total overhead cost at various levels of activity are presented below: Total Machine-Overhead Month April May June July Hours Cost 55,000 205,600 45,000179,600 65,000 75,000 ş 231,600 ş 257,600 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 45,000 machine-hour level of activity is Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $67,500 49,000 63,100 $179,600 Nova Company's management wants to break down the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT