Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the...
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Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor-Hours 1 725 2 710 685 745 785 760 3 4 5 6 7 8 9 10 11 12 745 730 710 790 680 720 Machine-Hours 1,357 1,409 1,512 1,448 1,595 1,579 1,386 1,389 1,453 1,539 1,296 1,612 Overhead Costs $ 102,602 103,869 109,981 108,239 114, 175 114,434 107,084 102,143 106,415 113,069 97,750 109,600 2 ts Book O erences Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1.600 machine-hours next year. What are the estimated monthly cverhead costs, assuming no inflation? Complete this question by entering your answers in the tabs below. Required A Required B Managers expect the plant to operate at a monthly average of 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? < Required A Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor-Hours 1 725 2 710 685 745 785 760 3 4 5 6 7 8 9 10 11 12 745 730 710 790 680 720 Machine-Hours 1,357 1,409 1,512 1,448 1,595 1,579 1,386 1,389 1,453 1,539 1,296 1,612 Overhead Costs $ 102,602 103,869 109,981 108,239 114, 175 114,434 107,084 102,143 106,415 113,069 97,750 109,600 2 ts Book O erences Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1.600 machine-hours next year. What are the estimated monthly cverhead costs, assuming no inflation? Complete this question by entering your answers in the tabs below. Required A Required B Managers expect the plant to operate at a monthly average of 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? < Required A
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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