PROBLEM 1 ABC Company's total overhead costs at various levels of activity are presented below: Machine Hours Total Overhead Costs $216,800 $194,000 $239,600 $262,400 March April May June 60,000 50,000 70,000 80,000 Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000 machine-hour level of activity these costs are: Utilities (V). Supervisory salaries (F).. Maintenance (M). Total overhead cost. $ 54,000 62,000 78.000 $194.000 V = Variable; F = Fixed; M = Mixed The company wants to break down the maintenance cost into its basic variable and fixed cost elements. Required: a. Estimate the maintenance cost for June. b. Use the high-low method to estimate the cost formula for maintenance cost. C. Estimate the total overhead cost at an activity level of 55.000 machine hours.

PROBLEM 1 ABC Company's total overhead costs at various levels of activity are presented below: Machine Hours Total Overhead Costs $216,800 $194,000 $239,600 $262,400 March April May June 60,000 50,000 70,000 80,000 Assume that the overhead costs above consist of utilities, supervisory salaries, and maintenance. At the 50,000 machine-hour level of activity these costs are: Utilities (V). Supervisory salaries (F).. Maintenance (M). Total overhead cost. $ 54,000 62,000 78.000 $194.000 V = Variable; F = Fixed; M = Mixed The company wants to break down the maintenance cost into its basic variable and fixed cost elements. Required: a. Estimate the maintenance cost for June. b. Use the high-low method to estimate the cost formula for maintenance cost. C. Estimate the total overhead cost at an activity level of 55.000 machine hours.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 5SEB: PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead...

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