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 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $12,000 Supervisory salaries (considered fixed) $4,000 Maintenance (considered mixed) $17,000 $33,000 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 t company expects to incur at an activity level of 6,800 machine hours?

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 4,000 machine-hour level of activity is as follows: Utilities (considered variable) $12,000 Supervisory salaries (considered fixed) $4,000 Maintenance (considered mixed) $17,000 $33,000 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 t company expects to incur at an activity level of 6,800 machine hours?

Name: The DAC-95559 company's total overhead cost at various levels of acti
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: The DAC-95559 company's total overhead cost at various levels of activity is presented below:MonthMarchAprilMayJuneMachine Hours5,0004,0006,0008,000Total Overhead Cost$ 41,250$ 33,000$ 49,500$ 59,000Assume that the overhead cost above consists of ut

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...

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
Ripley, Inc., costs products using a normal costing system. The following data are available for last year: Overhead is applied on the basis of direct labor hours. Required: 1. What was the predetermined overhead rate? 2. What was the applied overhead for last year? 3. Was overhead over- or underapplied, and by how much? 4. What was the total cost per unit produced (carry your answer to four significant digits)?
The actual overhead for a company is $73,175. Overhead was based on 4,500 machine hours and was $3,325 over applied for the year. What is the overhead application rate per direct labor hour? What is the journal entry to dispose of the under applied overhead?
Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor hours costing $2,500,000 in labor and utilizing 12,500 machine hours. Calculate the predetermined overhead rate using: A. Direct labor hours B. Direct labor dollars C. Machine hours
If a company bases its predetermined overhead rate on 100,000 machine hours, and It actually has 100,000 machine hours, would there be an under applied or over applied overhead?
The DAC-59183 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 9,000 Total Overhead Cost $ 32,500 $ 26,000 $ 39,000 $ 51,000 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 $ 10,000 $ 26,000 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 6,400 machine hours? ○ $15,600 $15,300 $14,800 $14,400
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…
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
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
The DAC-28155 company's total overhead cost at various levels of activity is presented below: Month March April May Machine Hours 5,000 4,000 6,000 8,000 Total Overhead Cost $ 42,500 $ 34,000 $ 51,000 $ 60,000 0 June 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) Supervisory salaries (considered fixed) Maintenance (considered mixed) Total overhead cost $16,000 $4,000 $14,000 $ 34,000 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 5,000 machine hours? $16,500 $17,300 $16,800 $16,300
Nova Company's total overhead cost at various levels of activity are presented below: Total Overhead Cost Month April May June July Machine- Hours 54,000 44,000 64,000 74,000 $ 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. Required: 1. Estimate how much of the $264,440 of overhead cost in July was maintenance cost. (Hint: to do this, it may be helpful to first determine how much of the $264,440 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs.) 2. Using the high-low method, estimate a cost formula for maintenance in the form Y = a +…
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