performs 3,400 oil changes.S6-8 Use the high-low method (Learning Objective 4)Based on last month's records, Vochelle produced 44,000 bars of chocolate with a totalmanufacturing cost of $120,000. Vochelle also has past records of total manufacturingcost being $100,000 when it produced 36,000 bars of chocolate. If Vochelle produces40,000 bars of chocolate next month, what is the expected total manufacturing cost usingthe high-low method?S6-9 Use the high-low method (Learning Objective 4)Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rentalfee and a per-copy charge. If the company makes 8,000 copies per month, the over-all per-copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it isestimated that the cost per copy is $0.19.1. Using the high-low method, estimate the variable rate per copy and the annualrental fee.2. If 9,000 copies were made in a month, compute the total cost. Jones Oil and Lube is a car care center specializing in ten-minute oil changes. Jones Oiland Lube has two service bays, which limits its capacity to 3,400 oil changes per month.The following information was collected over the past six months:MonthNumber of Oil ChangesOperating ExpensesJanuary .3,200$36,400February .2,600$31,900March2,800$32,850April.2,700$32,500May..3,600$37,000June....2,900$33,700

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Description: performs 3,400 oil changes.S6-8 Use the high-low method (Learning Objective 4)Based on last month's records, Vochelle produced 44,000 bars of chocolate with a totalmanufacturing cost of $120,000. Vochelle also has past records of total manufacturing

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S6-8 Use the high-low method (Learning Objective 4) Based on last month's records, Vochelle produced 44,000 bars of chocolate with a total manufacturing cost of $120,000. Vochelle also has past records of total manufacturing cost being $100,000 when it produced 36,000 bars of chocolate. 40,000 bars of chocolate next month, what is the expected total manufacturing cost using the high-low method? Vochelle produces

S6-8 Use the high-low method (Learning Objective 4) Based on last month's records, Vochelle produced 44,000 bars of chocolate with a total manufacturing cost of $120,000. Vochelle also has past records of total manufacturing cost being $100,000 when it produced 36,000 bars of chocolate. 40,000 bars of chocolate next month, what is the expected total manufacturing cost using the high-low method? Vochelle produces

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 1CE

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Guillermo's Oil and Lube Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oil change takes 20 minutes and 6.4 quarts of oil are used. In June, Guillermo's Oil and Lube had 920 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 920Actual number of quarts of oil used: 6,800 quartsActual price paid per quart of oil: $5.30Standard price per quart of oil: $5.20 Required: 1. Calculate the direct materials price variance (MPV) and the direct materials usage variance (MUV) for June using the formula approach. If required, round your answers to the nearest cent. MPV $_______ Unfavorable MUV $______ Unfavorable 2. Calculate the total direct materials variance for oil for June. If required, round your answer to the nearest cent. $__________ Unfavorable 3. What…
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