Question
In: Accounting
The total costs incurred in 2019 at various output levels in a factory have been measured...
The total costs incurred in 2019 at various output levels in a factory have been measured as follows:
|
Output (Units) |
Total Cost ($) |
|
40 |
1800 |
|
70 |
2,400 |
|
80 |
2,600 |
|
100 |
3,000 |
|
160 |
4,200 |
When output is 200 units or more, another factory unit must be rented and fixed costs therefore increase by 50%. Variable cost per unit is forecast to rise by 20% at the start of 2020.
Required:
Using the high-low method and least squares method-
a. Calculate the Variable cost per unit.
b. Calculate Total Fixed Cost.
c. Develop the cost function that links Cost to Output (2020).
d. Calculate the estimated total costs of producing 200 units in 2020.
e. Calculate the estimated output if total cost is $15,400 in 2020.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The following table shows the total output per hour produced in a factory for various levels of employment of labor:
The following table shows the total output per hour produced in a
factory for various levels of employment of labor:Number ofWorkersTotalOutput18218330441550655759861A) The firm sells each unit of output at $2, and each worker is
paid a wage of $12.After how many workers, does diminishing returns start to
occur?B)The firm sells each unit of output at $2, and each worker is
paid a wage of $12.How many workers should the firm employ in order to maximize
profit?
On March 31, 2019, Dorchester Corporation recorded the following factory overhead costs incurred: Factory Manager Salary &n
On March 31, 2019, Dorchester Corporation recorded the
following factory overhead costs incurred:
Factory
Manager
Salary $5,500
Factory
Utilities 2,800
Machinery
Deprecation 9,000
Machinery
Repairs 1,800
Factory
Rent 2,000
The overhead application rate is based on direct labor
hours. The preset formula for overhead application
estimated that $22,000 would be incurred, and 2,000 direct labor
hours would be worked. During March, 650 hours were actually worked
on Job Order 3-1 and 1,200 hours were actually worked on Job Order
3-2. Use this...
Research and Development Costs Cressman Company incurred R&D costs for various projects in 2019 as follows:...
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Materials used for development
160,000
Equipment acquired that will have alternative uses in
future
research projects for 4 years
2,000,000
Personnel costs of employees involved in research
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Personnel costs of employees involved in development
400,000
Consulting fees paid to outsiders for research
30,000
Consulting fees paid to outsiders for development
100,000
Indirect costs reasonably allocable for research...
Nova Company’s total overhead costs at various levels of activity follow: Month Machine-Hours Total Overhead Costs...
Nova Company’s total overhead costs at various levels of
activity follow:
Month
Machine-Hours
Total Overhead Costs
April
78,000
$
214,000
May
115,500
286,000
June
96,000
238,000
July
106,000
246,640
Assume that the total overhead costs consist of utilities,
supervisory salaries, and maintenance. The breakdown of these costs
at the 78,000 machine-hour level of activity is as follows:
Utilities (V)
$
48,640
Supervisory salaries (F)
22,600
Maintenance (M)
142,760
Total overhead costs
$
214,000
V = variable; F = fixed; M...
Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total...
Crosshill Company’s total overhead costs at various levels of
activity are presented below:
Month
Machine-Hours
Total Overhead Cost
April
49,000
$209,260
May
39,000
$182,860
June
59,000
$235,660
July
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Assume that the overhead cost above consists of utilities,
supervisory salaries, and maintenance. The breakdown of these costs
at the 39,000-machine-hour level of activity in May is as
follows:
Utilities (variable)
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Supervisory salaries (fixed)
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Maintenance (mixed)
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Total overhead cost
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182,860
The...
Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total...
Crosshill Company’s total overhead costs at various levels of
activity are presented below:
Month
Machine-Hours
Total Overhead Cost
April
49,000
$191,570
May
39,000
$166,270
June
59,000
$216,870
July
69,000
$242,170
Assume that the overhead cost above consists of utilities,
supervisory salaries, and maintenance. The breakdown of these costs
at the 39,000-machine-hour level of activity in May is as
follows:
Utilities (variable)
$
54,600
Supervisory salaries (fixed)
53,000
Maintenance (mixed)
58,670
Total overhead cost
$
166,270
The...
Prospero Corporation’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total...
Prospero Corporation’s total overhead costs at various
levels of activity are presented below:
Month
Machine-Hours
Total Overhead Costs
August
8,000
$119,400
September
12,000
$142,800
October
16,000
$166,200
November
4,000
$93,120
Assume that the total overhead costs above consist of
utilities, supervisory salaries, and maintenance. The breakdown of
these costs at the 4,000 machine-hour level of activity
is:
Utilities (variable)
$11,520
Supervisory salaries (fixed)
15,600
Maintenance (mixed)
66,000
Total overhead costs
$93,120
Prospero Corporation’s management wants to break down
the maintenance...
Noise levels at various road construction sites were measured in decibels. The mean the noise levels...
Noise levels at various road construction sites were
measured in decibels. The mean
the
noise levels in a sample of 64 construction sites was 85 decibels.
The
population
standard deviation is 10 decibels. Find the 95% confidence interval
for
the
true mean noise level at road construction sites.
Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With...
Classify Costs
Following is a list of various costs incurred in producing
replacement automobile parts. With respect to the production and
sale of these auto parts, classify each cost as either variable
costs, fixed costs, or mixed costs.
1. Oil used in manufacturing equipment
2. Plastic
3. Property taxes, $165,000 per year on
factory building and equipment
4. Salary of plant manager
5. Cost of labor for hourly workers
6. Packaging
7. Factory cleaning costs, $6,000 per
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8. Metal...
Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With...
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Following is a list of various costs incurred in producing
replacement automobile parts. With respect to the production and
sale of these auto parts, classify each cost as either variable
costs, fixed costs, or mixed costs.
1. Oil used in manufacturing equipment
2. Plastic
3. Property taxes, $165,000 per year on
factory building and equipment
4. Salary of plant manager
5. Cost of labor for hourly workers
6. Packaging
7. Factory cleaning costs, $6,000 per
month
8. Metal...
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