Harnow Company manufactures drill presses. Based on past experience, Harnow has found that its total overhead cost can be represented by the following formula: Totaloverhead cost = $35,500+ $1.25x, where x = number of machine hours. Last year, Harnow incurred 120,000 machine hours.Required: Enter all amounts as positive numbers. Round to the nearest cent.A. What was the total overhead cost incurred by Harnow last year?$B. What was the total variable overhead cost incurred by Harnow last year?$C. What was the total overhead cost per machine hour last year? Round the answer to two decimal places.$D. What was the fixed overhead cost per machine hour last year? Round the answer to two decimal places.E. If Harnow incurs 140,000 machine hours next year, what will be the total overhead cost per machine hour? Round the answer to two decimal places.

Overhead costs are those that are not directly related to the production of goods or services, but…

Answered: Harnow Company manufactures drill…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr). and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square 0.90]; [Y= $120,000 + $5xMhr; R-square 0.10]: [Y=D190,000+2Q; R-square%3D0.55]. How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: Oa 45% Ob. None of the answers given O c 10% O a. 5596 Ce. 90%,
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = $520,475 + $1.49X, where X equals number of smokers. Last year, SmokeCity produced 19,100 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? For questions 2-4, Enter the final answers rounded to the nearest dollar. 2. What is the total overhead cost incurred by SmokeCity last year? $fill in the blank 2 3. What is the total fixed overhead cost incurred by SmokeCity last year? $fill in the blank 3 4. What is the total variable overhead cost incurred by SmokeCity last year? $fill in the blank 4 For questions 5-7, round your answers to the nearest cent. Use those rounded figures in subsequent computations, if necessary. 5. What is the overhead cost per unit produced? $fill in the blank 5 per unit 6. What is the fixed overhead cost…
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XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$95,000 + $9×DLH; R-square = 0.85); [Y= $120,000 + $5xMhr; R-square = 0.15]; [Y=190,000+2Q; R-square=0.45]. How much of the variations on the overhead costs is explained by the direct labor hours (DLH)? Select one: O a. 55% O b. None of the answers given O c. 15% O d. 85% O e. 45%
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