Maintenance Machine Health Number of Shipping Costs Units Month Costs Hours Insurance Employees Shipped January February $4,500 $4,452 $8,600 $8,600 $25,776 $29,664 165 68 7,160 8,240 120 75 March $4,600 $8,600 $8,600 $28,674 7,965 230 92 April May $4,850 318 105 $23,058 6,405 $5,166 $8,600 $21,294 460 89 5,915 June $4,760 $8,600 $8,600 $33,282 280 87 9,245 July August September $4,910 340 $31,428 8,730 93 $4,960 360 $8,600 $30,294 88 8,415 $5,070 420 $8,600 $25,110 95 6,975 October $5,250 $8,600 $25,866 495 102 7,185 $20,124 November $5,271 $8,600 510 97 5,590 December $4,760 $8,600 $34,596 275 94 9,610 Required 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation. 4. Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Account analysis, high-low. Stein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017:
Trending now
This is a popular solution!
Step by step
Solved in 8 steps with 8 images
