Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 54,000 44,000 64,000 74,000 Total Overhead Cost $ 210,240 $ 183,140 $ 237,340 $ 264,440 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $70,400 47,000 65,740 $183,140 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements.

Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 54,000 44,000 64,000 74,000 Total Overhead Cost $ 210,240 $ 183,140 $ 237,340 $ 264,440 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 44,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $70,400 47,000 65,740 $183,140 Nova Company's management wants to break down the maintenance cost into its variable and fixed cost elements.

Name: Nova Company's total overhead cost at various levels of activity are
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Nova Company's total overhead cost at various levels of activity are presented below:TotalOverheadCostMonthAprilMayJuneJulyMachine-Hours54,00044,00064,00074,000$ 210,240$ 183,140$ 237,340$ 264,440Assume that the total overhead cost above consists of

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...

See similar textbooks

Similar questions

A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the activity for the cost driver was estimated as 2,500 hours. If product A utilized 1,350 hours and product 8 utilized 1,100 hours, what was the total amount of overhead assigned to the products? A. $35000 B. $30.800 C. $37,800 D. $68,600
A company has the following overhead costs and activities: Estimated Expected Activity Product V Product W Product X Overhead Activities and Activity Measures Machine setups (setups) Processing customer orders (orders) Assembling products (assembly-hours) $9,178.00 Cost $7,234.50 $3,565.50 69 12 10 20 9 21 492 697 111 1. If the company allocates overhead to products using assembly hours as the single allocation base, how much overhead will be allocated to product X? A. $1,706 B. $784 C. $618 D. $304 2. How much overhead cost would be assigned to Product V using the activity-based costing system? A. $158 B. $91,722 C. $10,385 D. $5,485
Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost Actual annual overhead cost Estimated machine hours Actual machine hours $1,560,000 applied and $15,000 overapplied $1,600,000 applied and $15,000 overapplied $1,560,000 applied and $15,000 underapplied $1,575,000 applied and neither under- nor overapplied ● An A ♫ $1,600,000 $1,575,000 400,000 W 390,000 D P & E f
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine-Hours TotalOverheadCost April 52,000 $ 202,860 May 42,000 $ 179,060 June 62,000 $ 226,660 July 72,000 $ 250,460 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) $ 50,400 Supervisory salaries (fixed) 66,000 Maintenance (mixed) 62,660 Total overhead cost $ 179,060 Nova Company’s management wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $250,460 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $250,460 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low…
Kareem Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost OMR 1,600,000 Actual annual overhead cost OMR 1,575,000 Estimated machine hours 400,000 Estimated Labor hours 200,000 Actual Labor hours 150,000 Actual machine hours 390,000
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine-Hours TotalOverhead Cost April 52,000 $ 203,860 May 42,000 $ 181,060 June 62,000 $ 226,660 July 72,000 $ 249,460 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) $ 50,400 Supervisory salaries (fixed) 67,000 Maintenance (mixed) 63,660 Total overhead cost $ 181,060
Marigold Company applies overhead on the basis of machine hours. Given the following data, what is the overhead applied and the under- or overapplication of overhead for the period? Estimated annual overhead cost Actual annual overhead cost Estimated machine hours Actual machine hours $3160000 $2900000 350000 280000 O $3160000 applied and $372000 overapplied O $2528000 applied and $372000 overapplied O $2900000 applied and neither under- nor overapplied O $2528000 applied and $372000 underapplied
Assume (1) estimated total manufacturing overhead cost = $100,000, (2) estimated total amount of the allocation base = 20,000 direct labor hours, (3) the total direct labor hours actually worked during the period = 22,800, and (4) the total manufacturing overhead actually incurred during the period is $103,000. What is the total amount of underapplied or overapplied overhead for the period? X $11,000 overapplied $11,000 underapplied $13,000 overapplied $13,000 underapplied
Concord Corporation applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $1500000 Actual annual overhead cost $1475000 Estimated machine hours 500000 Actual machine hours 490000 $1470000 applied and $5000 overapplied $1475000 applied and neither under-nor overapplied $1470000 applied and $5000 underapplied $1500000 applied and $5000 overapplied
Swifty Company applies overhead on the basis of machine hours. Given the following data, what is the overhead applied and the under- or overapplication of overhead for the period? Estimated annual overhead cost Actual annual overhead cost Estimated machine hours Actual machine hours $1660000 $1555000 320000 100000 O $1660000 applied and $1036250 overapplied O $1555000 applied and neither under-nor overapplied O $518750 applied and $1036250 underapplied O $518750 applied and $1036250 overapplied
Assume (1) estimated direct labor hours used to calculate the predetermined overhead rate = 19,950, (2) the manufacturing overhead applied to production = $105,000, and (3) the total direct labor hours actually worked during the period = 21,000.What is the estimated total manufacturing overhead cost for the period?
The DAC-95559 company's total overhead cost at various levels of activity is presented below: Month March April May June Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 41,250 $ 33,000 $ 49,500 $ 59,000 Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $12,000 Supervisory salaries (considered fixed) $4,000 $17,000 $33,000 Maintenance (considered mixed) Total overhead cost Suppose the company uses the high-low method to estimate a cost formula for mixed costs. What is the total maintenance cost the company expects to incur at an activity level of 6,800 machine hours? $26,800 $27,100 $26,500 $27,500