Etsi GR is a Greek manufacturing company whose total factory overhead costs fluctuate from year to year according to the number of machine- hours worked in its production facility. These costs at HIGH and LOW levels of activity over recent years are given below: High Low Machine –hours 80,000 60,000 Total overhead costs €312,000 €274,000 The total overhead costs ABOVE AT 60,000 machine hours (Low point) are made up of the following costs: Indirect Materials (VARIABLE) € 90,000 Rent (FIXED) 130,000 Maintenance (MIXED) 54,000 274,000 A)How much of the €312,000 total overhead costs (at High point) above are made up of indirect materials cost, rent and maintenance costs?
Etsi GR is a Greek manufacturing company whose total factory overhead costs fluctuate from year to year according to the number of machine- hours worked in its production facility. These costs at HIGH and LOW levels of activity over recent years are given below: High Low Machine –hours 80,000 60,000 Total overhead costs €312,000 €274,000 The total overhead costs ABOVE AT 60,000 machine hours (Low point) are made up of the following costs: Indirect Materials (VARIABLE) € 90,000 Rent (FIXED) 130,000 Maintenance (MIXED) 54,000 274,000 A)How much of the €312,000 total overhead costs (at High point) above are made up of indirect materials cost, rent and maintenance costs?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
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Etsi GR is a Greek manufacturing company whose total
These costs at HIGH and LOW levels of activity over recent years are given below:
High Low
Machine –hours 80,000 60,000
Total overhead costs €312,000 €274,000
The total overhead costs ABOVE AT 60,000 machine hours (Low point) are made up of the following costs:
Indirect Materials (VARIABLE) € 90,000
Rent (FIXED) 130,000
Maintenance (MIXED) 54,000
274,000
- A)How much of the €312,000 total overhead costs (at High point) above are made up of indirect materials cost, rent and maintenance costs?
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