Correct Option C i.e. $10,325 | ||||
Mahcine hr | Cost | |||
High LEVEL | 26000 | 14000 | ||
Low Level | 11000 | 8800 | ||
Change | 15000 | 5200 | ||
Change per unit (Variable cost) = Change in total cost / Change in Units Sold | ||||
= 5200/15000 | ||||
0.35 | ||||
Fixed Cost calculation | ||||
Variable Cost + Fixed cost = Total cost | ||||
0.35*26000 + Fixed Cost = 14000 | ||||
Fixed Cost = 4900 | ||||
Cost for 15500 hrs | ||||
Variable cost | 5425 | |||
Fixed cost | 4900 | |||
Total Cost for 15500 Hrs | 10325 | |||
Runaround Corporation salle running shoes and during January they production machines for 25.000 hours and mounted...
Question Help Runaround Corporation sells running shoes and during January they ran production machines for 22,000 hours total and incurred $10,000 in maintenance costs. During July they ran production machines for 16,000 hours total and incurred $8,400 in maintenance costs. Based on this data, what is the cost formula for maintenance costs? (Round intermediary calculations to the nearest cent.) O A. y = $0.84 X + $10,000 OB. y = $3.67 X + $28,660 O c. y = $0.27 X...
Duard Games, Inc, makes board games. The following data pertains to the last six months: Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Direct Labor Hours 45,000 68,000 57.000 52,000 34,000 25,000 Manufacturing Overhead $295,000 $313,000 $323,000 $247,250 $178,200 $161,500 Based on this data, what would the estimated manufacturing overhead be at a level of 48,000 direct labor hours? (Round intermediary calculations to the nearest cent.) O A. $242,600 OB. $164,940 O c. $329,960 OD. Cannot...
Roberta, Inc., manufactures elliptical machines for several
well-known companies. The machines differ significantly in their
complexity and their manufacturing batch sizes. The following costs
were incurred in 2017:
Requirement 1. Classify each of the preceding
costs as output unit-level, batch-level, product-sustaining, or
facility-sustaining. Explain each answer (answer options
are in bold on the cost-type row pick one).
Cost Item
Cost Type
a. Indirect manufacturing labor costs such as
supervision that supports direct manufacturing labor,
$935,000
(Batch Level, Facility-sustaining, Output unit-level,...
Case 27 To Use or Not to Use?
Beaufort Sea Production Company (BSPC) operates a medium-sized oil
field on Alaska’s north coast. The field is still producing at its
maximum rate, 325,000 barrels of oil per day (BOPD). However, to
sustain this rate the company started a waterflood of the reservoir
two years ago. Now a capacity bottleneck in the water disposal
process is threatening to curtail production. In waterflooding,
salt water from the Beaufort Sea is treated to remove...