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 $15,400 in 2020.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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$ 250,000
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Equipment acquired that will have alternative uses in
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Personnel costs of employees involved in research
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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)
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Supervisory salaries (F)
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Maintenance (M)
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V = variable; F = fixed; M...
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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
69,000
$262,060
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)
$
58,500
Supervisory salaries (fixed)
65,000
Maintenance (mixed)
59,360
Total overhead cost
$
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
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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)
$
54,600
Supervisory salaries (fixed)
53,000
Maintenance (mixed)
58,670
Total overhead cost
$
166,270
The...
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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
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Utilities (variable)
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Supervisory salaries (fixed)
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Maintenance (mixed)
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Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With...
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1. Oil used in manufacturing equipment
2. Plastic
3. Property taxes, $165,000 per year on
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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
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High–Low Method; Predicting Cost Prince Company’s total overhead costs at various levels of activity are presented...
High–Low Method; Predicting Cost
Prince Company’s total overhead costs at various levels of activity
are presented below:
labour overhead
Month Hours Cost
September . . . . . . . . . . . . . . . . . . 100,000
$388,000
October . . . . . . . . . . . . . . . . . . . . . 80,000
$340,400
November . . . . . . ....
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