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Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angle has gathered the following cost information from the past year: A.) Identify the high and low points (Activity level) $ High Low Using the high-low method, compute the overhead cost per labor hour and the fixed overhead cost per month. (Round variable cost to 2 decimal places, eg. 15.25 and fixed cost 5 O decimal places, e.g. 5,275.) Variable cost = $________ per labor hour. Fixed cost=$____________ B.) Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur? Total Cost =$______ C.) If Angie books one more catering job for the month, requiring 350 labor hours. how much additional overhead should she expect to incur? Additional overhead= $_________

Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angle has gathered the following cost information from the past year: A.) Identify the high and low points (Activity level) $ High Low Using the high-low method, compute the overhead cost per labor hour and the fixed overhead cost per month. (Round variable cost to 2 decimal places, eg. 15.25 and fixed cost 5 O decimal places, e.g. 5,275.) Variable cost = $________ per labor hour. Fixed cost=$____________ B.) Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur? Total Cost =$______ C.) If Angie books one more catering job for the month, requiring 350 labor hours. how much additional overhead should she expect to incur? Additional overhead= $_________

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 6BE: Jakes Cabins is a small motel chain with locations near the national parks of Utah, Wyoming, and...
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Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angle has gathered the following cost information from the past year: A.) Identify the high and low points (Activity level) $ High Low Using the high-low method, compute the overhead cost per labor hour and the fixed overhead cost per month. (Round variable cost to 2 decimal places, eg. 15.25 and fixed cost 5 O decimal places, e.g. 5,275.) Variable cost = $________ per labor hour. Fixed cost=$____________ B.) Angie has booked 4,200 labor hours for the coming month. How much overhead should she expect to incur? Total Cost =$______ C.) If Angie books one more catering job for the month, requiring 350 labor hours. how much additional overhead should she expect to incur? Additional overhead= $_________
Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angie has gathered the following cost information from the past year: Month January February March April May June July August September October November December Total Labor Hours 3,800 3,100 3,200 4,300 4,600 5,800 8,100 7,800 6,700 4,800 3,400 6,800 62,400 Overhead Costs $62,300 59,090 60,090 64,450 67,5 71,900 81,590 78,500 73,170 68,600 62,180 74,200 $823.610
Transcribed Image Text:Angie March owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and year-end holidays and light demand at other times. Angie has gathered the following cost information from the past year: Month January February March April May June July August September October November December Total Labor Hours 3,800 3,100 3,200 4,300 4,600 5,800 8,100 7,800 6,700 4,800 3,400 6,800 62,400 Overhead Costs $62,300 59,090 60,090 64,450 67,5 71,900 81,590 78,500 73,170 68,600 62,180 74,200 $823.610
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