56. cost estimation techniques -
Take any two activity levels and their respective maintenance costs. Now,the difference of costs is to be divided by difference of their respective activity levels , which there after results in variable maintenance cost per direct labor hour .
46.excel sheet screenshots are attached for reference showing the formula for learning curve calculations and time required to complete cleaning all 5 rooms= Tn. As and when the nth column(number of units) readings change,the time required for Tn changes,like in the solved answer on paper.
46. Tom and Mike are installing new flooring in their home. The house has 5 rooms...
93. Tom and Mike are installing new flooring in their home. The house has 5 rooms of approximately equal size where the flooring will be replaced. Tom and Mike spent 3 hours removing the old flooring from the first room. The average time to remove the flooring from 2 rooms is 2.25 hours per room. Determine the learning curve percentage experienced by Tom and Mike. Below are values that may be useful in answering this question. (95%) / In(2)--0074 In(90%),...
40. The labour cost to construct the first unit of a special piece of equipment was $126,000. If labour costs are subject to a 90% learning curve, what will be the cost to build the second unit? Use the following values as needed to respond In(95%) / ln(2)s-0074 In(90%) /ln(2) =-0.152 In(8596) / ln(2) =-0.234 In(80%) / In(2) =-0.322 n(75%)/In(2) =-0.415 In(70%)/In(2) -0.515 a) $126,000 b) $113,000 c) $100,800 d) $113,400 Answer: d 41 A firm will build 8 units...
60. Smith Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hours 4,800 3,400 4,000 5,900 Repair Costs $6,385 4,585 5,285 7,085 Using the high-low method, what is the variable repair cost per machine hour? a) $0.15 b) $1.00 c) $4.00 d) $5.00 Answer: b Difficulty: Easy Learning Objective: Describe cost estimation techniques CPA: Management Accounting/Problem-Solving and Decision-Making Bloomcode: Application 61. Smith Company is attempting to develop the cost function for...
76. An organization's accountant is estimating next period's total overhead costs. She performed two regression analyses, one based on direct labour hours and the other based upon machine hours. The results were: Total overhead $150,000+ $4 x direct labour hours Adjusted R-square- 0.65 Total overhead $130,000 + $5 x machine hours Adjusted R-square 0.77 For the next period, the accountant anticipates using 28,000 direct labour hours and 26,000 machine hours. Based upon this information, what is the best estimate for...
76. An organization's accountant is estimating next period's total overhead costs. She performed two regression analyses, one based on direct labour hours and the other based upon machine hours. The results were: Total overhead $150,000+ $4 x direct labour hours Adjusted R-square- 0.65 Total overhead $130,000 + $5 x machine hours Adjusted R-square 0.77 For the next period, the accountant anticipates using 28,000 direct labour hours and 26,000 machine hours. Based upon this information, what is the best estimate for...
5. Consider the following cost data for the cost object, number of machine setups. Each set of costs (A, B, and C) is from a different type of manufacturing operation and represents the cost behaviour for the cost of that company's machine setups. Number of Machine Setups CostA CostB Cost $80 79 82 78 81 79 10 20 30 20 37 91 123 154 100 Cost B is best described as: a) Fixed b) Variable c) Mixed d) Discretionary Answer:ta...
please help 1. Mike K. provides consulting and tax preparation services to clients. Mike charges a fee of $100 per hour for each service and can devote a maximum of 4,000 hours annually to his clients. He reported the following revenues and expenses for 2014: $400,000 Revenue Expenses (all overhead): Secretarial support Supplies Computer costs Net income $84,000 72,000 48.000 $196,000 Being an accountant, Mike kept good records of the following data for 2014: Revenues Direct labour hours Tax Preparation...
please do C and D 1. Mike K. provides consulting and tax preparation services to clients. Mike charges a fee of $100 per hour for each service and can devote a maximum of 4,000 hours annually to his clients. He reported the following revenues and expenses for 2014: $400,000 Revenue Expenses (all overhead): Secretarial support Supplies Computer costs Net income $84,000 72,000 48.000 $196,000 Being an accountant, Mike kept good records of the following data for 2014: Revenues Direct labour...
76. A firm selling three products has the following data: Unit Unit Variable Product Sales Mix Price Cost 60,000 units $40 S20 40,000 units 60 30 20,000 units 30 5 If the firm can change the sales mix from 60,000 P, 40,000 Q, and 20,000 R to 60,000 P, 20,000 Q, and 40,000 R, pre-tax income will be a) Lower b) Higher c) Unchanged d) Cannot be determined Answer: a Difficulty: Medium Learning Objective: Apply CVP calculations for multiple products....
35. PhotoMix Corporation produces three products. Cost, price, and volume data is shown below: Total Fixed costs $2.400 Tax rate 40% Candle Holders Holders Holders Normal volume Price per unit Variable cost per unit 150 $5 $10 3 2 When using units as the measure, what proportion of the sales mix do picture holders represent? Round to the nearest whole percent. a) 33% b) 46% c) Some other percentage d) Cannot be determined Answer: b Difficulty: Easy Learning Objective: Explain...