The controller of Jema Company has requested a quick estimate of the manufacturing supplies that it needs for the month of July when the expected production are 470,000 units. Below are the actual data from the prior three months of operations. Production in units 450,000 540,000 480,000 Manufacturing supplies P723,060 March April May 853,560 766,560 Using these data and the high-low method, what is the reasonable estimate of the cost of manufacturing supplies that would be needed for July? (Assume that this activity is within the relevant range.) A. P 805,284 P1,188,756 C. P 755,196 D. P 752,060 В.

The following information applies to the questions displayed below.]   Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:     Fixed Elementper Month Variable Element per Customer Served Actual Totalfor May Revenue     $ 5,400   $ 226,000 Employee salaries and wages $ 61,000 $ 2,200   $ 158,700 Travel expenses     $ 530   $ 20,700 Other expenses $ 40,000       $ 38,000   When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 13. What amount of other expenses would be included in Adger’s planning budget for May? - What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U"…

The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $52,866 1,860 Units May 55,160 2,600 Units June 58,818 3,780 Units (a) Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit (b) Using the high-low method, determine total fixed costs.

Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of the year are as follows.    January February March April Estimated production in units 6,000 7,000 3,000 4,000   Required Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. Allocate overhead costs to each month using the overhead rate computed in Requirement a. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.

Domestic

A company estimates its manufacturing overhead will be $720,711 for the next year. What is the predetermined overhead rate if the allocation base is 58,987 budgeted direct labor hours? Round to the nearest hundredth, two decimals.

Santorini Ltd. has accumulated the following data over a six-month period:   Indirect Labor Hours Indirect Labor Cost January 500 $ 9,500 February 400 9,000 March 600 10,000 April 800 12,000 May 700 11,000 June 650 10,500 Determine the formula that could be used to determine Santorini’s indirect labor cost at various levels of production using the high-low method.

Tractor Company needs to prepare pro forma financial statements for the next fiscal year. To do so, the company must forecast its total overhead cost. The actual machine hours and total overhead cost are presented below for the past six months. Machine Hours 1,990 2,100 1,750 1,600 1,870 2,020 Using the high-low method, unit variable overhead cost is calculated to be: Month January February March April May June Multiple Choice O O O $2.08 $1.78 $1.98 $1.68 Total Overhead $ 6,320 $1.88 6,580 6,020 5,590 6,060 6,370

The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year:     Machine Hours Direct Labor Costs Busiest month (June) 17,500 $ 229,022 Slowest month (December) 10,200 $ 155,000   If Macon expects to use 13,500 machine hours next month, what are the estimated direct labor costs?

Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: January 40,000     February 50,000     March 60,000     April 60,000     May 62,000     The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing: Finished goods inventory on January 1 is 32,000 units, each costing $166.06. The desired ending inventory for each month is 80% of the next month's sales. The data on materials used are as follows: Direct Material Per-Unit Usage DM Unit Cost ($) Metal 10 lbs.   8 Components 6   5 Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month's production needs. This is exactly the amount of material on hand on December 31 of the prior year. The direct labor used per unit of…