Using the least-squares method of analyzing costs, answer the following questions and show computations to support your answers. a. What is the estimated variable portion of maintenance costs per labor hour? B.What is the estimated fixed maintenance cost each month? C.Formulate the regression equation
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Using the least-squares method of analyzing costs, answer the following questions and show computations to support your answers. a. What is the estimated variable portion of maintenance costs per labor hour?
B.What is the estimated fixed maintenance cost each month?
C.Formulate the regression equation
D.If it is estimated that 600 labor hours will be used in July, what is the expected total power cost for July?
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- Selected activities and other information are provided for Patterson Company for its most recent year of operations. Required: 1. Form reduced system cost pools for activities 7 and 8. 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer B. 3. What if the two activities were 1 and 3? Repeat Requirements 1 and 2. What does this imply?Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 3,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (B) and (C).Cost Accounting Need Help with question 1. Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Ratios Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,000,000 0.70 0.30 8. Purchasing materials Number of purchase orders 2,500 0.20 0.80 1. Developing test programs Engineering hours 10,000 0.25 0.75 3. Testing products Test hours 20,000 0.60 0.40 ABC assignments $1,500,000 $1,500,000 Total overhead cost…
- The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month TotalMaintenance Costs TotalMachine Hours January $2,817 3,734 February 3,201 4,268 March 3,841 6,402 April 4,801 8,429 May 3,414 5,335 June 4,930 8,536 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour $ eTextbook and Media Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Fixed costs $Test II. MATCHING Match the type of income statement to the costs it includes.a. Variable costing income statementb. Absorption costing income statementc. Both types of income statements 1. Direct materials for units sold2. Direct labor for units sold3. Variable overhead for units sold4. Fixed factory overhead for the period5. Only fixed factory overhead for units sold6. Variable selling expense7. Fixed selling expense8. Administrative expenseThe Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,685 Standard error of Y estimate $3,500 r2 0.7832 Number of observations 20 X coefficient(s) 10.25 Standard error of coefficient(s) 2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15X
- Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50Various cost-behavior patterns. (CPA, adapted). The vertical axes of the graphs below represent total cost, and the horizontal axes represent units produced during a calendar year. In each case, the zero point of dollars and production is at the intersection of the two axes. Select the graph that matches the numbered manufacturing cost data (requirements 1-9). Indicate by letter which graph best fits the situation or item described. The graphs may be used more than once. Annual depreciation of equipment, where the amount of depreciation charged is computed by the machine-hours method. Electricity bill—a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are used, in which the quantity of kilowatt-hours used varies proportionately with quantity of units produced. City water bill, which is computed as follows: First 1,000,000 gallons or less $1,000 flat fee Next 10,000 gallons $0.003 per gallon used Next 10,000 gallons $0.006 per gallon used Next 10,000…Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each prod-uct. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities.2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome.3. What if activities 1, 2, 5, and 8 each had a cost of $650,000 and the remaining activities hada cost of $50,000? Calculate the cost assigned to Wafer A by a fully specified ABC systemand then by an approximately relevant ABC approach. Comment on the implications forthe approximately relevant approach.
- E4-1 Classifying fixed and variable costs Classify each of the following items of factory overhead as either a fixed or a variable cost. (Include any costs that you consider to be semivariable within the variable category. Remember that variable costs change in total as the volume of production changes.) a. Indirect labor b. Indirect materials c. Insurance on building d. Overtime premium pay e. Depreciation of building (straight-line method) f. Polishing compounds g. Depreciation of machinery (units-of-production method) h. Employer’s payroll taxes i. Property taxes j. Machine lubricants k. Employees’ hospital insurance (paid by employer) l. Labor for machine repairs m. Vacation pay n. Janitor’s wages o. Rent p. Small tools q. Plant manager’s salary r. Factory electricity s. Product inspector’s wages(a) Based on new number of orders in Requirement 2, what is the customer margin under activity-based costing when the data are corrected? (Enter a loss as a negotive omount) Custemer margin under activity tased costing $(7,700)Pharma Hill Company accumulates the following data for the period of six months:Unit Heat expenseJanuary 2400 4,000February 2300 4,300March 2200 4,200April 2000 4,000May 1800 3,800June 1900 3,900Required:a) Separate the variable and fixed elements using high-low method.b) Express this cost behavior in equation formc) Calculate heat expense at 2100 units.