MRW Co. manufactures office furniture. During the most productive month of the year3,500 desks were manufactured at a total cost of $84,400. In its slowest month of theyear, the business made 1,100 desks at a cost of $46,000. What amount are the fixedcosts, using the high-low method of cost estimation?O $5,600.00O $17,600.00O $28.400.00O cannot be determined from the data given

We use the high-low method in Cost Accounting to find out the amounts for the fixed and variable…

Answered: What amount are the fixed

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 30E: Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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 = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Strait Co. manufactures office furniture. During the most productive month of the year, 3,800 desks were manufactured at a total cost of $84,300. In the month of lowest production, the company made 1,240 desks at a cost of $56,500. Using the high-low method of cost estimation, total fixed costs are Round your intermediate calculations to two decimal places. O a. $56,500 O b. $43,032 O c. $27,800 O d. $84,300
Ravena Company manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of P84,400. In its slowest month, the company made 1,100 desks at a cost of P46,000. 11. Using the high-low method of cost estimation, the total fixed cost are a. P56,000 b. P28,400 c. P17,600 d. P38,400 12. The variable cost per unit is a. P 16.00 b. P 15.00 c. P 14.00 d. P 17.00
Strait Co. manufactures office furniture. During the most productive month of the year, 3,100 desks were manufactured at a total cost of $84,200. In the month of lowest production, the company made 1,230 desks at a cost of $57,800. Using the high-low method of cost estimation, total fixed costs are Round your intermediate calculations to two decimal places. Oa. $57,800 Ob. $40,428 Oc. $26,400 Od. $84,200 C G
Strait Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $82,500. In the month of lowest production, the company made 1,130 desks at a cost of $62,500. Using the high-low method of cost estimation, total fixed costs are Round your intermediate calculations to two decimal places, Oa. $82,500 Ob. $20,000 Oc. $52,960 Od. $62,500
Marcye Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $84,400. In its slowest month,the company made 1,100 desks at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs are: a. $56,000 b. $28,400 c. $17,600 d. cannot be determined from the data given
Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks were manufactured at a total cost of $84,500. In the month of lowest production, the company made 1,170 desks at a cost of $55,500. Using the high-low method of cost estimation, total fixed costs are a.$84,500 b.$55,500 c.$29,000 d.$38,772
Strait Co. manufactures office furniture. During the most productive month of the year, 3,200 desks were manufactured at a total cost of $83,200. In the month of lowest production the company made 1,120 desks at a cost of $63,600. Using the high-low method of cost estimation, total fixed costs are a. $53,056 b. $63,600 c. $83,200 d. $19,600
Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs a. are $61,875 b. are $33,875 c. are $24,750 d. cannot be determined from the data given

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