Question

The cost accountants at the Barkley Company regressed total overhead costs and direct labor hours for...

The cost accountants at the Barkley Company regressed total overhead costs and direct labor hours for the past 30-months and reported the following results:

Slope $ 41.97
Intercept $ 614.00
Correlation Coefficient .962


What is the estimated overhead cost if 215 direct labor hours are expected to be used in the upcoming period? (rounded to the nearest whole dollar)

$9,024.

$8,386.

$9,994.

$9,638.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Estimated overhead cost

= (Slope*215) + intercept

= (41.97*215) + 614

= 9638

Option D is the answer

Add a comment
Know the answer?
Add Answer to:
The cost accountants at the Barkley Company regressed total overhead costs and direct labor hours for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • Balcom Enterprises is planning to introduce a new product that will sell for $120 a unit....

    Balcom Enterprises is planning to introduce a new product that will sell for $120 a unit. Manufacturing cost estimates for 22,500 units for the first year of production are: • Direct materials $1,237,500 - Direct labor $855,000 (based on $19 per hour x 45,000 hours) Although overhead has not been estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent...

  • Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours...

    Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing overhead cost Direct labor cost Direct labor hours Machine hours Estimated Value $ 599,000 $ 401.000 17,000 hours 8.000 hours Actual Value $ 660.000 $ 455,000 18.500 hours 9.000 hours Required: 1. Based on the company's current allocation base (direct labor hours), compute the following: a. Predetermined overhead rate. (Round your answer to 2...

  • Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs...

    Units produced Machine-hours Direct labor-hours Direct materials costs Direct labor costs Manufacturing overhead costs Total costs Basic 1,100 3,800 3,600 $18,000 64,500 Dominator 360 3,200 2,100 $ 5,650 45,500 Total 1,460 7,000 5,700 $ 23,650 110,000 209,370 $343,020 Tiger Furnishings's CFO believes that a two-stage cost allocation system would give managers better cost information. She asks the company's cost accountant to analyze the accounts and assign overhead costs to two pools: overhead related to direct labor cost and overhead related...

  • Data section Manufacturing overhead cost Direct labor cost Direct labor hours Machine hours Estimated value Actual...

    Data section Manufacturing overhead cost Direct labor cost Direct labor hours Machine hours Estimated value Actual value 594,000 $ 396,000 $ 16,500 7,500 655,000 450,000 18,000 8,500 Requirement 1: Predetermined overhead rate Formula Manufacturing overhead cost/ direct labor hours Answer Applied manufacturing overhead: Formula Answer Under or over applied? Dollar amount? Requirement 2: Predetermined overhead rate Formula Answer Carry answer out to two decimal places Applied manufactring overhead Formula Answer Under or over applied? Dollar amount? Requirement 3: Predetermined overhead...

  • Nadal Company is debating the use of direct labor cost or direct labor hours as the...

    Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Actual direct labor hours Estimated direct labor hours Actual manufacturing overhead costs Estimated manufacturing overhead costs Actual direct labor cost Estimated direct labor cost 232,500 250,300 $363,500 $401,900 $465,800 $500,700 If Nadal Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead...

  • Quick Step Company is debating the use of direct labor cost or direct labor hours as...

    Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year. Estimated Direct Labor Cost 480,000 Actual Direct Labor Cost 465,200 Estimated Manufacturing Overhead 422,400 Actual Manufacturing Overhead 350,000 Estimated Direct Labor Hours 25,080 Actual Direct Labor Hours 23,270 If Quick Step Company uses direct labor cost as the allocation base, what would the allocated manufacturing overhead...

  • Quick Step Company is debating the use of direct labor cost or direct labor hours as...

    Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year. Estimated Direct Labor Cost 528,000 Actual Direct Labor Cost 511,720 Estimated Manufacturing Overhead 464,640 Actual Manufacturing Overhead 385,000 Estimated Direct Labor Hours 27,588 Actual Direct Labor Hours 25,597 If Quick Step Company uses direct labor cost as the allocation base, what would the allocated manufacturing overhead...

  • Hugo's Consulting expects its consultants to work a total of 7,000 direct labor hours during the...

    Hugo's Consulting expects its consultants to work a total of 7,000 direct labor hours during the upcoming year and are paid $175,000. Estimated total indirect costs are $84,000. The indirect cost allocation rate is based on direct labor hours. What is the total cost of Job 628 that used 12 hours of labor time? Round to the nearest whole number. Do not include dollar signs or commas in your answer.

  • Quick Step Company is debating the use of direct labor cost or direct labor hours as...

    Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: Estimated direct labor cost Actual direct labor cost Estimated manufacturing overhead costs Actual manufacturing overhead costs Estimated direct labor hours Actual direct labor hours $500,200 $466,000 $425,100 $350.800 250,300 232,600 If Quick Step Company uses direct labor hours as the allocation base, what would the allocated...

  • Davie, Inc. used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,100,000...

    Davie, Inc. used estimated direct labor hours of 250,000 and estimated manufacturing overhead costs of $1,100,000 in establishing its predetermined overhead allocation rate for the year. Actual results showed the following: What was the number of direct labor hours worked during the year? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.) Supporting Materials Actual manufacturing overhead Allocated manufacturing overhead $800,000 $900,000 O 181,818 hours O 281,250 hours O 250,000 hours 204,545...

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