Required 2A 3,000,000 Estimated Overhead Costs by Department 2000000? Activity Maintenance Supervision Finishing 6000,000 Supervision Totals Units produced Overhead cost per unit 5000,000 Estimated Overhead Costs by Activity Required 28 Required 3 Total: $8,000,000 Activity Usage 2 MH 1 DLH Total: $8,000,000 S S XL Assembly Activity Rate 60 per MH 16 per DLH Maintenance Allocated cost S < Required 2A Estimated Direct Labor Hours & Machine Hours by Department 150,000 h... 0 125,000 h... 100,000 h... 75,000 hrs 50,000 hrs 25,000 hrs Assembly 25,000 Chrom produced 25,000 units of XL and 25,000 units of RD. Each unit of the XL model used 2 direct labor hours and 1 machine hour. Each unit of the RD model used 3 direct labor hours and 3 machine hours. Compute the overhead cost per unit of each model using ABC. Finishing Direct Labor Hours Supervision 29 125,000 OLH Activity Usage MH DLH Required 2B > Cost Driver & Expected Usage by Activity RD Activity Rate per MH per DLH 70,000 Assembly Finishing Machine Hours $ Maintenance 100,000 MH Allocated cost 30,000 0 0

The Connors Company has assembled the following data pertaining to certain costs that cannot beeasily identified as either fixed or variable. Connors Company has heard about a method of measuringcost functions called the high-low method and has decided to use it in this situation.A company has heard about a method of measuring cost functions called the regression analysis and hasdecided to use it in this situation.Cost Hours$23,000 5,000$26,000 6,450$34,600 7,650$42,000 10,000$38,000 9,350What is the estimated total cost at an operating level of 9,000 hours?A) $34,200B) $38,200C) $41,400D) $37,800 Work question #7 using regression analysis

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Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models:   Activity Cost Pool Activity Rates Supporting manufacturing $ 2 per direct labour-hour Order processing $ 12 per order Customer service $ 53 per customer     Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months:     Standard Model Deluxe Model Number of cases   120     20   Number of orders   5     2   Direct labour-hours per case   0.25     0.40   Selling price per case $ 32   $ 52   Direct materials cost per case $ 9   $ 12       The company’s direct labour rate is $12 per hour.   Required: Using the company’s ABC system, compute the customer margin…

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Cost Formula Actual Cost in March Utilities $16,200 + $0.20 per machine-hour $ 21,600 Maintenance $38,100 + $1.70 per machine-hour $ 62,500 Supplies $0.80 per machine-hour $ 14,200 Indirect labor $94,100 + $1.60 per machine-hour $ 123,800 Depreciation $67,900 $ 69,600 During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March.…

Howard Cooper, the president of Stuart Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Stuart charges customers $80 per hour, the firm can achieve 36,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same consultant also suggests that if the firm…

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