Question
In: Accounting
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor-Hours Machine-Hours Overhead Costs 1 720 1,364 $ 102,688 2 705 1,410 103,821 3 680 1,521 109,893 4 750 1,449 108,341 5 775 1,582 116,197 6 755 1,588 114,500 7 745 1,393 107,042 8 725 1,302 102,055 9 705 1,444 106,344 10 795 1,540 113,137 11 670 1,286 101,526 12 710 1,608 114,728 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
Adriana Corporation manufactures football equipment. In planning
for next year, the managers want to understand the relation between
activity and overhead costs. Discussions with the plant supervisor
suggest that overhead seems to vary with labor-hours,
machine-hours, or both. The following data were collected from last
year’s operations.
Month Labor-Hours Machine-Hours Overhead Costs 1 3,625 6,775
$513,435 2 3,575 7,035 518,960 3 3,400 7,600 549,575 4 3,700 7,265
541,400 5 3,900 7,955 581,145 6 3,775 7,895 572,320 7 3,700 6,950
535,110...
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
Adriana Corporation manufactures football equipment. In planning
for next year, the managers want to understand the relation between
activity and overhead costs. Discussions with the plant supervisor
suggest that overhead seems to vary with labor-hours,
machine-hours, or both. The following data were collected from last
year's operations:
Month
Labor-Hours
Machine-Hours
Overhead Costs
1
730
1,360
$
102,763
2
715
1,409
103,806
3
670
1,519
109,869
4
745
1,458
108,249
5
785
1,596
116,196
6
755
1,575
114,446
7
750
1,381...
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
Adriana Corporation manufactures football equipment. In planning
for next year, the managers want to understand the relation between
activity and overhead costs. Discussions with the plant supervisor
suggest that overhead seems to vary with labor-hours,
machine-hours, or both. The following data were collected from last
year's operations:
Month
Labor-Hours
Machine-Hours
Overhead Costs
1
730
1,360
$
102,763
2
715
1,409
103,806
3
670
1,519
109,869
4
745
1,458
108,249
5
785
1,596
116,196
6
755
1,575
114,446
7
750
1,381...
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
Adriana Corporation manufactures football equipment. In planning
for next year, the managers want to understand the relation between
activity and overhead costs. Discussions with the plant supervisor
suggest that overhead seems to vary with labor-hours,
machine-hours, or both. The following data were collected from last
year's operations. Month Labor-Hours Machine-Hours Overhead
Costs
1 3,625 6,775 $ 513,435
2 3,575 7,035 518,960
3 3,400 7,600 549,575
4 3,700 7,265 541,400
5 3,900 7,955 581,145
6 3,775 7,895 572,320
7 3,700 6,950...
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
Adriana Corporation manufactures football equipment. In planning
for next year, the managers want to understand the relation between
activity and overhead costs. Discussions with the plant supervisor
suggest that overhead seems to vary with labor-hours,
machine-hours, or both. The following data were collected from last
year's operations.
Month
Labor-Hours
Machine-Hours
Overhead Costs
1
725
1,358
$
102,740
2
720
1,416
103,850
3
675
1,523
109,964
4
745
1,445
108,298
5
790
1,588
116,141
6
745
1,584
114,509
7
745
1,381...
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
Adriana Corporation manufactures football equipment. In planning
for next year, the managers want to understand the relation between
activity and overhead costs. Discussions with the plant supervisor
suggest that overhead seems to vary with labor-hours,
machine-hours, or both. The following data were collected from last
year's operations.
Month
Labor-Hours
Machine-Hours
Overhead Costs
1
735
1,364
$
102,675
2
715
1,407
103,885
3
675
1,519
109,961
4
745
1,445
108,299
5
780
1,591
116,141
6
755
1,584
114,405
7
735
1,388...
Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation... Rodgers Corporation...
Rodgers Corporation produces and sells football equipment. On
July 1, Year 1, Rodgers Corporation... Rodgers Corporation produces
and sells football equipment. On July 1, Year 1, Rodgers
Corporation issued $65,000,000 of 10-year, 12% bonds at a market
(effective) interest rate of 10%, receiving cash of $73,100,469.
Interest on the bonds is payable semiannually on December 31 and
June 30. The fiscal year of the company is the calendar year.
5. Compute the price of $73,100,469 received for the bonds by...
Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $80,000,000...
Rodgers Corporation produces and sells football equipment. On July
1, Year 1, Rodgers Corporation issued $80,000,000 of 10-year, 11%
bonds at a market (effective) interest rate of 9%, receiving cash
of $90,406,136. Interest on the bonds is payable seminannually on
Dec 31 and June 30. The fiscal year of the company is the calendar
year.
5. Compute the price of $90,406,136 received for the bonds by
using the table 1, table 2, table 3, table 4. Round to the nearest...
Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $58,000,000...
Rodgers Corporation produces and sells football equipment. On
July 1, Year 1, Rodgers Corporation issued $58,000,000 of 10-year,
10% bonds at a market (effective) interest rate of 9%, receiving
cash of $61,772,146. Interest on the bonds is payable semiannually
on December 31 and June 30. The fiscal year of the company is the
calendar year.
Compute the price of $61,772,146 received for the bonds by using
Table 1, Table 2, Table 3 and Table 4. Round to the nearest dollar....
Rodgers Corporation produces and sells football equipment. On July 1, Year 1, Rodgers Corporation issued $66,400,000...
Rodgers Corporation
produces and sells football equipment. On July 1, Year 1, Rodgers
Corporation issued $66,400,000 of 10-year, 13% bonds at a market
(effective) interest rate of 11%, receiving cash of $74,335,112.
Interest on the bonds is payable semiannually on December 31 and
June 30. The fiscal year of the company is the calendar year.
Required:
For all journal
entries with a compound transaction, if an amount box does not
require an entry, leave it blank.
1.
Journalize the entry...
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