1.As any architect, Tasha is always drinking coffee. Unfortunately one morning she spilt some coffee on...

1.As any architect, Tasha is always drinking coffee. Unfortunately one morning she spilt some coffee on some of the records of Zube Co. She asked you, Aga, her longtime accountant friend to help her find the missing numbers:

Direct materials used	$19376
Direct labour costs	?
Manufacturing overhead	?
Total manufacturing costs	$105869
Work in process, beginning	$18159
Work in process, ending	$33671
Cost of goods manufactured	?

In addition, you were also provided the following information:

Indirect materials and labour	$26981
Depreciation on administrative office	$4998
Property taxes for administrative office	$15414

What are the direct labour costs incurred and cost of goods manufactured?

2.You are given the following data for Skylar Ltd.:

	Direct Labour Hours	Overhead Costs
January	25700	$630800
February	32600	$700100
March	44819	$881656
April	37500	$720500
May	40400	$910300
June	21133	$620781
July	23700	$651000
August	39200	$759000
September	41837	$751248
October	24000	$615200
November	25200	$620100
December	30100	$654377

Using the high-low method, estimate the total overhead at a volume of 30,000 direct labour hours:

Select one:

a. $330417

b. $676657

c. $718441

d. $654377

Expert Solution

Answer 1.


Statement of Cost of Goods Manufactured
Direct Material Used	19,376.00
Direct Labor Cost - $105,869 - ($19,376 + $26,981)	59,512.00
Manufacturing Overhead - Indirect Material & Labor	26,981.00
Total Manufacturing Costs	105,869.00
Add: WIP Inventory, Beginning	18,159.00
Sub-total	124,028.00
Less: WIP Inventory, Ending	(33,671.00)
Cost of Goods Manufactured	90,357.00


Answer 2-c. $718,441

Using the High Low Method - Overhead Costs
	DLH	Overhead
Cost Driver - Highest - March	44,819	881,656.00
Cost Driver - Lowest - June	21,133	620,781.00
Difference	23,686	260,875.00

Variable Cost = $260,875 / 23,686 DLH = $11.01 per DLH (Approx.)
Fixed Cost = $881,656 - (44,819 DLH X $11.01) = $388,024.46 or say $388,024 (Approx.)
Fixed Cost = $36,000

The linear equation as Per High Low Method - Overhead Costs
Y = $388,024 + $11.01 X

Overhead Cost of 30,000 DLH:
Y = $388,024 + $11.01 X 30,000 DLH
Y = $718,440.70 or say $718,441 (Approx.)

ekkarill92 answered 2 years ago

1) A psychologist is investigating the relationship between drinking coffee and sleep. She chooses 20 participants...

1) A psychologist is investigating the relationship between drinking coffee and sleep. She chooses 20 participants and measures how many cups of coffee they had the previous day and how many hours of sleep they got the night before. The data is presented below: Coffee Sleep 0 9.5 1 9.5 4 7 5 6 2 8 3 8.5 1 8 1 6 4 6 3 7 6 7 6 7.5 2 8.5 0 9 1 9 2 7 4 5...

1) Amiti currently smokes one pack of cigarettes a day; she typically smokes with her morning...

1) Amiti currently smokes one pack of cigarettes a day; she typically smokes with her morning coffee, after meals, in her car, and when hanging out with her friends who smoke. Identify five actions or strategies that Amiti can use to increase her chances of success at quitting. 2) Your cousin has confided in you that she thinks she might have a drug problem. She explains that lately she can only think about getting high and seems to need much...

Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed...

Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice: Transferred cash from a personal bank account to an account to be used for the business, $36,000. Paid October rent for office and workroom, $2,400. Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder. Purchased office and computer equipment on account, $9,000. Paid cash for supplies, $2,150. Paid cash...

Kimberly Manis, an architect, opened an office on January 1, 2016. During the month, she completed...

Kimberly Manis, an architect, opened an office on January 1, 2016. During the month, she completed the following transactions connected with her professional practice: a. Transferred cash from a personal bank account to an account to be used for the business, $22,000. b. Paid January rent for office and workroom, $1,650. c. Purchased used automobile for $26,000, paying $4,800 cash and giving a note payable for the remainder. d. Purchased office and computer equipment on account, $5,600. e. Paid cash...

Mary has standard indifference curves (convex). She always buys 3 pounds of coffee each month. Even...

Mary has standard indifference curves (convex). She always buys 3 pounds of coffee each month. Even when the price of coffee doubles, Mary buys 3 pounds of coffee. (a) What is Mary’s price elasticity for coffee? (b) Plot Mary’s indifference curves. Plot coffee on the horizontal axis and money to spend on other goods on the vertical.

Assignment 1 Choose any one variable of interest (e.g., cups of coffee) and collect data from...

Assignment 1 Choose any one variable of interest (e.g., cups of coffee) and collect data from two independent samples (e.g., men vs. women, children vs. adults, college students vs. non-college students, etc.) could make up the data.. of minimum size n=5 each. Complete the following: Indicate whether your variable is continuous or discrete. Indicate which scale of measurement your variable is categorized as (nominal, ordinal, interval, or ratio). Calculate the mean, median, and mode for each sample. Provide a conclusion...

Every morning Mary randomly decides on one of three possible ways to get to work. She...

Every morning Mary randomly decides on one of three possible ways to get to work. She makes her choice so that all three choices are equally likely. The three choices are described as follows: • Choice A (Drives the highway): The highway has no traffic lights but has the possibility of accidents. The number of accidents on the highway for the hour preceding Mary’s trip, X, follows a Poisson distribution with an average of 2. The time (minutes) it takes...

1. What are the FOUR critical functions of water? 2. Are there any benefits to drinking...

1. What are the FOUR critical functions of water? 2. Are there any benefits to drinking a sports drink?

QUESTION 38 True or false? Drinking 2.5 cups of coffee up to 1 hour before exercising...

QUESTION 38 True or false? Drinking 2.5 cups of coffee up to 1 hour before exercising often extends endurance in strenuous aerobic exercise. True False

A local fertility specialist noticed that some of her patients were heavy coffee drinkers. She wanted...

A local fertility specialist noticed that some of her patients were heavy coffee drinkers. She wanted to know if there was any association between coffee drinking and conception in the first year of trying. She asked a random sample of 40 patients (some of whom have successfully become pregnant) about coffee drinking. The table below summarizes the data (table entries represent raw frequencies of women in terms of pregnant or not and coffee drinker or not). Using alpha =.01, use...

Question