The following were the data obtained by the manager for the first 3 quarters for 2020:Maintenance MachineQuarterCostsHours1st quarter1,520,00050,0002nd quarter1,718,30062,0003rd quarter1,526,00046,000How much is the expected maintenance costs for November 2020, if the expected machine hours is 33,000?

In cost accounting, the high low method is a type of technique that is used to segregate mixed costs…

Answered: How much is the expected maintenance…

Business

Accounting

How much is the expected maintenance costs for November 2020, if the expected machine hours is 33,000?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cooper Industries is considering a project that would require an initial investment of $235,000. The…

A: The IRR of the project can be calculated with the help of IRR function of Excel. The IRR function…

Q: Assume cost is $10,000 each year, benefit is $8,000 each year, interest rate is 2%. calculate NPV if…

A: NPV refers to the net present value of a project. NPV is an important capital budgeting tool. As per…

Q: The price of $6100 face value commercial paper is $5900. If the annualized investment rate is 10%,…

A: Here, Face Value of Commercial Paper is $6,100 Price of Commercial Paper is $5,900 Annualized…

Q: On January 1, 2021, X Company bought a machine for $40,000. It's now January 1, 2022, and management…

Q: Following table shows the initial investment required in and cash flow (return) from a project…

A: Capital Budgeting Techniques are used to choose the most profitable investment alternative. Based on…

Q: A Freeze dryer is expected to cost RM19,000 two years from now and another RM12,000 four years from…

A: Concept. FV = PV ( 1+ r)n Where , FV = future value PV = present value r = interest rate n = time…

Q: In one year, a project will be worth $10,000. What is that project worth today assuming a discount…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: What is the interest earned on a project that requires an initial investment of $ 10,000 and…

A: Initial investment (PV) = $ 10,000 Future value (FV) = $ 20,114 Period (n) = 5 Years

Q: A company is considering selling a large piece of equipment within the next few years. If the…

A: The objective of the question is to calculate the future value of the equipment after 3 years…

Q: Assume that Brian Heun has reviewed his work schedule and decided that it makes sense to…

A: Depending on their individual or team performance, employees get performance bonuses. They could be…

Q: What is the project's payback period? Round your answer to two decimal places. years

A: Payback Period: It is the period in which the project or investment returns its initial cost. A…

Q: A transit system is estimated to cost $2,000,000 with operating and maintenance costs starting…

A: Capital Budgeting: It is the planning process used to determine whether an organization invests for…

Q: Two hundred thousand peso will be received 10 years from today. Assuming an opportunity cost of 10…

A: Present value is today's value of future cash flows. It is calculated by discounted future cash…

Q: Maintenance costs at the Woodland Waterpark are predicted to be $1,400 in the first year and…

A: Maintenance costs at the Woodland Waterpark are predicted to be $1,400 in the first year and…

Q: The year-end operating and maintenance costs of a certain drilling platform are estimated to be…

A: Present worth and future worth The value of a financial asset over time at a particular interest…

Q: Calculate the NPV of a project under consideration with the following information: project life = 5…

A: NPV stands for Net Present Value. It is a financial metric used to determine the value of an…

Q: Calculate the annual cost of a project that has an initial cost of P 3,000,000 and an additional…

A: Present worth(Present value) It is the concept that an amount of money received today is more…

Q: Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the…

A: Given: Investment =$15000Annual return =$5000Inflation rate =30%

Q: A project costs $1200.00 at the end of the 1st year and the yearly cost increases by $400.00 every…

A: EUAC = r*NPV/1-(1+r)^(-n) here r = 8% and n is 4 years Let us first compute the NPV: Year Costs…

Q: Assuming a discount rate of 7%, what is the net present value of replacing the current machine with…

A: Answer:

Q: Project L costs $55,903.24, its expected cash inflows are $12,000 per year for 10 years, and its…

A: IRR is the rate at which NPV of the project is zero.

Q: Consider a project with costs of $39 million total in 6 years. Assuming that the costs are paid the…

A: Given: Future value (FV) = $39 Million Time period (n) = 6 years Discount rate (r) = 6% = 0.06

Q: What is the maximum that should be invested in a project at time zero if the inflows are estimated…

A: An investment in a project refers to the allocation of funds, resources, or assets with the…

Q: The initial construction cost of a project is $200000 which should be paid at the beginning of the…

A: Cash Flow Diagram:-

Q: 6. Suppose a planned project with a current construction cost $10,000,000 is suddenly delayed for 2…

A: Even though the cost increases by 2% per year, the annual return of 1.75% generated on unused funds…

Q: What is the IRR of a project that involves an initial expenditure of $100,000 but results in a…

A: Initial expenditure (Present Value) $1,00,000 Return After 10 years (Future Value) $2,00,000…

Q: 1. Calculate the present value of $90,000 to be received 14 years from now it the decision makers'…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: Assuming a 9 percent return on investment, how many years will it take $60,000 to grow to $900,000?

A: The NPER function or concept is used to determine the time required for an investment to grow to a…

Q: Cecil company is considering the of a new machine. The machine cost $227,500 and will generate a…

A: Machine cost (C) = $227500 Cash inflow (A) = $35000

Q: A factory costs $810,000. You reckon that it will produce an inflow after operating costs of…

A: Initial cost (I) = $810,000 Annual net cash inflow (C) = $171,000 Period (n) = 11 years Cost of…

Q: Our new project proposal will require roughly 500 hours of total staff time and $1,000 in materials.…

A: Total staff budget is $520000 for 10 FTE per year ie. for 52 weeks & Total working time is 500…

Q: Revenues generated by a new fad product are forecast as follows: Year Revenues $45,000 1 2 35,000 3…

A: let's solve this step-by-step:a. Initial Investment in the Product:The initial investment includes…

Q: How much can a construction company afford to spend now on new equipment in lieu of spending 300,000…

A: Solution:- Amount which is to be paid today = Present value of future payments discounted at the…

Q: any predicts they will make $17,948 per year over the next 6 years if they spend $14,012 on a…

A: NPV of investment is net value added by project to company and it should be accepted if NPV of…

Q: The following material costs are anticipated over a 5-year period: $9,000, $11,000, $14,000,…

A: Period Material costs ($) 1 9,000 2 11,000 3 14,000 4 18,000 5 23,000 Total = $ 75,000

Q: wallace inc is considering spending $100,000 for a new grinding machine. this amount could be…

Q: How do you determine the cash pay back period for a proposed production purchased, assuming a…

A: Cash payback method:Cash payback period is the expected time period which is required to recover the…

Q: what is maintenance costs each year (from year 1 to year 5). ...

A: We can determine the maintenance costs per year using the formula below:Maintenance cost from year 2…

Question

The following were the data obtained by the manager for the first 3 quarters for 2020:
Maintenance Machine
Quarter
Costs
Hours
1st quarter
1,520,000
50,000
2nd quarter
1,718,300
62,000
3rd quarter
1,526,000
46,000
How much is the expected maintenance costs for November 2020, if the expected machine hours is 33,000?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2: Computation of expected maintenance costs in November, 2020

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

(4) Evaluate the ROI.
A machine costs $10000 today and has annual operating costs of $3000 in each of the next four years. The cost of capital is 10%. The present value of the machine’s costs is ? And it’s equivalent annual cost is
9) A project has an initial cost of $65,000, expected net cash inflows of $11,000 per year for 9 years, and a cost of capital of 13%. What is the project's payback period? Round your answer to two decimal places. _____years
On January 1, 2021, X Company bought a machine for $44,000. It's now January 1, 2022, and management is disappointed that 2021 operating costs with the machine were $32,000. Since they are expecting future operating costs to continue to be $32,000 a year, they are considering replacing the machine with a new one. Although the new machine will cost $47,000, operating costs with the new machine will decrease by $8,000 each year. Both machines will last for 4 more years. The current machine can be sold immediately for $8,000 but will have no salvage value at the end of 4 years. The new machine will have a salvage value of $4,000 at the end of 4 years. Assuming a discount rate of 8%, what is the net present value of replacing the current machine with the new one? Submit Answer Tries 0/4
A project requires an initial investment of $10,000 and returns benefits of $3000 at the end of every fifth year thereafter. If the minimum attractive rate of return (MARR) is 5%, calculate the equivalent uniform annual worth.
A road requires no upkeep until the end of 3 years when P100,000 will be needed for repairs. After this, P80,000 will be needed for repairs at the end of each year for the next 6 years, then P130,000 at the end of each year for the next 6 years. If money is worth 14% compounded annually, what was the equivalent uniform annual cost for the 15-year period? Kindly anwer this engineering economy problem. Thank you
A project has an initial cost of $35,000, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 11%. What is the project's payback period? Round your answer to two decimal places. years
What would be the rate of return (IRR) on a project that had an initial cost of $100,000 today and $200,000 in 5 years from today BUT returns $50,000 at the end of the year for 10 years. Further, there would be a one-time payment received (income) of $70,000 at the end of the 10th year.
A four-year project requires $1 000 000 as the first cost and brings $2 000 000 at the end of the fourth year. If expected annual inflation over this period is 5%, what is the real IRR of this project? Answer should be 13.3%, I am just not sure how...