Wasderf Limited is a capital-intensive business that manufactures scuba tanks. Financial information for the last six months
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Question:
Wasderf Limited is a capital-intensive business that manufactures scuba tanks. Financial information for the last six months ending December 2019 reveals the following:
Month | Scuba tanks sold | Production overheads ($ thousands) |
July | 120 | 34 |
August | 100 | 31.3 |
September | 120 | 36 |
October | 140 | 37.4 |
November | 180 | 46.1 |
December | 160 | 43.7 |
Question 31 (2 marks): Use the high-low method to estimate the variable production overhead cost per scuba tank.
Question 32 (2 marks): Estimate the fixed production overhead cost.
Question 33 (2 marks): Estimate the total production overheads for January if the company expects sales of 210 scuba tanks in that month.
Related Book For
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany
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