Question
In: Accounting
At an activity level of 8,400 machine-hours in a month, Curt Corporation's total variable production engineering...
At an activity level of 8,400 machine-hours in a month, Curt Corporation's total variable production engineering cost is $732,480 and its total fixed production engineering cost is $180,400. What would be the production engineering cost per machine-hour, both fixed and variable, at an activity level of 8,800 machine-hours in a month? Assume that this level of activity is within the relevant range. (Do not round intermediate calculations.)
Solutions
Expert Solution
At activity level of 8,400 machine-hours:
Variable Production Engineering Cost = $732,480
Fixed Production Engineering Cost = $180,400
Variable Production Engineering Cost per machine-hour = Variable
Production Engineering Cost / Number of machine-hours
Variable Production Engineering Cost per machine-hour = $732,480 /
8,400
Variable Production Engineering Cost per machine-hour = $87.20
At activity level of 8,800 machine-hours:
Variable Production Engineering Cost per machine-hour =
$87.20
Fixed Production Engineering Cost = $180,400
Variable Production Engineering Cost = Variable Production
Engineering Cost per machine-hour * Number of machine-hours
Variable Production Engineering Cost = $87.20 * 8,800
Variable Production Engineering Cost = $767,360
Total Production Engineering Cost = Variable Production
Engineering Cost + Fixed Production Engineering Cost
Total Production Engineering Cost = $767,360 + $180,400
Total Production Engineering Cost = $947,760
Total Production Engineering Cost per machine-hour = Total
Production Engineering Cost / Number of machine-hours
Total Production Engineering Cost per machine-hour = $947,760 /
8,800
Total Production Engineering Cost per machine-hour = $107.70
ekkarill92 answered 1 year agoRelated Solutions
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Multiple Choice
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Month
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Total Overhead Cost
April
49,000
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59,000
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Month
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Total Overhead
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April
48,000
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June
58,000
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July
68,000
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Supervisory salaries
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Month
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49,000
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$216,870
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69,000
$242,170
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106,000
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