Question: Fixed costs remain constant at $ 2 0 0 , 0 0 0 per month. During high - output months variable costs are $ 1

Fixed costs remain constant at $200,000 per month. During high-output months variable costs are $160,000, and during low-output months variable costs are $40,000. What are the respective high and low indirect cost allocation rates if professional labour-hours are 8,000 for high-output months and 2,000 for low-output months?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

1) Which criterion for allocation of overhead (indirect) costs most likely promotes acceptance of the allocation? A. Direct cause-and-effect relationship B. Benefit-received relationship. C....

Q:

ACC105 - Unit 1 Study Guide Student: _Michael Garcia - orecbur 1. The sum of all costs of manufacturing costs except direct materials is called manufacturing overhead True Falso direct material...

Q:

1. Which of the following costs is considered an indirect cost to its given cost object? a. New plumbing system for a house b. An operation for a family pet c. Rent in a yearly budget d. Wax glaze...

Q:

1) Which criterion for allocation of overhead (indirect) costs most likely promotes acceptance of the allocation? A. Direct cause-and-effect relationship B. Benefit-received relationship. C....

Q:

Jpdate Question Help Fixed costs remain constant at $450,000 per month. During high output months variable costs are $300,000, and during low-output months variable costs are $125,000. What are the...

Q:

14) Fixed costs remain constant at $400,000 per month. During high-output months variable costs are $320,000, and during low-output months variable costs are $80,000. What are the respective high and...

Q:

A. A manufacturing company applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $450,000 and direct labor hours would be 90,000....

Q:

Fixed costs remain constant at $380,000 per month. During high-output months variable costs are $260,000, and during low-output months variable costs are $140,000. What are the respective high and...

Q:

Fixed costs remain constant at $420,000 per month. During highoutput months variable costs are$330,000, and during lowoutput months variable costs are $96,000. What are the respective high and low...

Q:

1. Boeing Company manufactures batteries and uses job - order costing system. For the current year, the manager of the company estimated that the company would need 80,000 machine hours and incur a...

Q:

Which of the following is not true about surrogate keys? They are identifiers that are supplied by the system, not the users. They have no meaning to the users. They are nonunique within a table....

Q:

Congress decides it wants to issue a total ban on online advertising of prescription medicines. If a pharmaceutical company challenges this total ban, is the company likely to be successful?

Q:

What is scechario analysis? Scenario analysis determiest the impact on NPV of a set of events relating to a specific scenario. Scenario analyis determines the impact on NPV of a change in a single...

Q:

Discuss the policy statement concept and identify three focus areas / procedures where a clearpolicy statement / operating procedure

Q:

4.80 A market researcher wants to determine whether a new model of a personal computer that had been advertised on a late-night talk show had achieved more brand-name recognition among people who...

Q:

4.82 A restaurant manager receives occasional complaints about the quality of both the food and the service. The marginal probability distributions for the number of weekly complaints in each...

Q:

4.79 The accompanying table shows, for credit-card holders with one to three cards, the joint probabilities for number of cards owned (X) and number of credit purchases made in a week (Y). Number of...