190.Strongsville College recently leased a photocopy machine for $2,000 per month plus $0.06 per copy. Strongsville...

190.Strongsville College recently leased a photocopy machine for $2,000 per month plus $0.06 per copy. Strongsville estimated it would produce 30,000 copies per month. The Arts Department estimated its usage as 6,000 copies, but it used only 4,000 copies. If fixed and variable cost pools are allocated separately, then the amount of fixed costs allocated to the Arts Department should be:

Select one:

a. $200.

b. $400.

c. $240.

d. $360.

Expert Solution

Answer:

Percent of Estimated Capacity
                = Department Estimation / college estimation
                =   6,000 / 30,000 Copies
                =   20%

Amount of fixed costs allocated to the Arts Department
                  =   Budgeted Fixed cost x Percent of Estimated Capacity
                  =      $2,000 x 20%
                  =   $400

Amount of fixed costs allocated to the Arts Department = $400

Option (b) is correct - $400

ekkarill92 answered 1 year ago

Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per machine-hour....

Dubberly Corporation's cost formula for its manufacturing overhead is $32,400 per month plus $54 per machine-hour. For the month of March, the company planned for activity of 7,880 machine-hours, but the actual level of activity was 7,790 machine-hours. The actual manufacturing overhead for the month was $482,490. The spending variance for manufacturing overhead in March would be closest to: A)29,430 U B)24,570 F C)29,430 D)24,570 U

An engineer deposits $2,000 per month for four years at a rate of 24% per year,...

An engineer deposits $2,000 per month for four years at a rate of 24% per year, compounded semiannually. How much will he be able to withdraw 10 years after his last deposit ?

It costs Mills, Inc. $9 per unit to manufacture 2,000 units per month of a product...

It costs Mills, Inc. $9 per unit to manufacture 2,000 units per month of a product that it can sell for $38 each. Alternatively, Mills could process the units further into a more complex product, which would cost an additional $22 per unit. Mills could sell the more complex product for $59 each. How would processing the product further affect Mills' profit?. If a decrease, place a –sign in front of your answer. Duncan Inc. has two divisions, Parker and...

A forklift can be leased for $3000 per month, with maintenanceand insurance included. Alternatively, the...

A forklift can be leased for $3000 per month, with maintenance and insurance included. Alternatively, the forklift can be purchased for $25,000. Maintenance will be $300 per month and insurance will be $400 per year. At the end of five years, the forklift will have a salvage value of $10,000. Based on an APR of 6%, determine which alternative is less expensive

A forklift can be leased for $3000 per month, with maintenance and insurance included. Alternatively, the...

A forklift can be leased for $3000 per month, with maintenance and insurance included. Alternatively, the forklift can be purchased for $25,000. Maintenance will be $300 per month and insurance will be $400 per year. At the end of five years, the forklift will have a salvage value of $10,000. Based on an APR of 6%, determine which alternative is less expensive. Please show all work.

BuBu Gump has a cost function for overhead costs of $60,000 per month plus $50 per...

BuBu Gump has a cost function for overhead costs of $60,000 per month plus $50 per client hour. In March its overhead allocation rate was calculated assuming 3,000 client hours. Actual overhead costs for July were $220,000, and client hours amounted to 2,800. A. Determine the total cost for Job 526 if direct costs were $52,000 and 850 hours were worked for the client. B. Provide examples of possible overhead costs for BuBu Gump that are (1) fixed and (2) variable. C. Determine...

Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame....

Ohme Framing's cost formula for its supplies cost is $1,620 per month plus $13 per frame. For the month of April, the company planned for activity of 882 frames, but the actual level of activity was 878 frames. The actual supplies cost for the month was $13,500. The supplies cost in the flexible budget for April would be closest to:

Westside Energy charges its electric customers a base rate of $4.00 per month, plus 12¢ per...

Westside Energy charges its electric customers a base rate of $4.00 per month, plus 12¢ per kilowatt-hour (kWh) for the first 300 kWh used and 3¢ per kWh for all usage over 300 kWh. Suppose a customer uses x kWh of electricity in one month. (a) Express the monthly cost E as a piecewise defined function of x. (Assume E is measured in dollars.) E(x) = A. if 0 ≤ x ≤ 300 B. if 300 < x C. (b) Graph the...

Example of a Long-Term Goal: Beginning January 2020, contribute $600 per month (2,000 per year) to...

Example of a Long-Term Goal: Beginning January 2020, contribute $600 per month (2,000 per year) to my Roth IRA for 40 years earning a rate of 8% per year for an ending balance of $518,113 on December 31, 2060. (This example used a time value of money calculation of N = 40, PMT = 2000, I = 8%) Based upon this example, create two other long term goals.

Cat leased $32,000 of conveyers to Dog for 60 months for $570 per month. The conveyers...

Cat leased $32,000 of conveyers to Dog for 60 months for $570 per month. The conveyers have a 10 year life. The implicit rate is six percent, Dog’s incremental borrowing rate. Record the journal entries for the initiation of the lease and the first two monthly payments for both Cat and Dog.

Question