Question 01: Ahmed, managing director of the National Manufacturing Company, is examining how overhead costs behave...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 01: Ahmed, managing director of the National Manufacturing Company, is examining how overhead costs behave with changes in monthly produced kilograms. Assume the following historical data: Total Overhead Costs Kilograms Produced $160,000 300 180,000 400 200,000 500 220,000 600 260,000 800 300,000 1,000 Required: 1. Develop the linear cost function using the High-Low Method. 2. What would be the predicted total overhead costs for producing (a) 700 units and (b) 1500 units using the cost function estimated in requirement 1? 3. Ahmed had a chance to learn and reduce the labor cost from doubling the number of units from 1 that requires 300 hours to 2 units and to 4 units. Suppose the learning curve is 70%, compute the labor cost of the two batches based on the reduction of time in performing the job. Given the average cost per hour is $40. Question 01: Ahmed, managing director of the National Manufacturing Company, is examining how overhead costs behave with changes in monthly produced kilograms. Assume the following historical data: Total Overhead Costs Kilograms Produced $160,000 300 180,000 400 200,000 500 220,000 600 260,000 800 300,000 1,000 Required: 1. Develop the linear cost function using the High-Low Method. 2. What would be the predicted total overhead costs for producing (a) 700 units and (b) 1500 units using the cost function estimated in requirement 1? 3. Ahmed had a chance to learn and reduce the labor cost from doubling the number of units from 1 that requires 300 hours to 2 units and to 4 units. Suppose the learning curve is 70%, compute the labor cost of the two batches based on the reduction of time in performing the job. Given the average cost per hour is $40.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Which groups are less likely to function smoothly? Question 16 options: Groups of two to three members Groups larger than eight to twelve members Groups smaller than five members Groups that have...
-
Terry Lawler, managing director of the Memphis Consulting Group, is examining how overhead costs behave with changes in monthly professional labor-hours billed to clients. Assume the following...
-
Sandy Smith, managing director of the Calgary Consulting Group, is examining how overhead costs behave with changes in monthly professional labour- hours billed to clients. Assume the following...
-
Select appropriate letter to each of its related definition in the list given below. Definition A. Economic resources to be used or turned into cash within one year. B. Reports assets, liabilities,...
-
Four firms produce four different goods. Deter mine which firms should shut down in the short run and/or in the long run, given the following data for each. PRICE 1.00 0.50 2.00 2.50 TC AFC AVC...
-
At time t = 10 s, the velocity of a particle moving in the x-y plane is v = 0.1i + 2j m/s. By time t = 10.1 s, its velocity has become 0.1i + 1.8j m/s. Determine the magnitude a av of its average...
-
A zero coupon bond with a par value of $100 matures in five years. (a) What is the price of the bond if the yield to maturity is 5 per cent? (b) What is the price of the bond if the yield to maturity...
-
Steam enters the condenser of a steam power plant at 20 kPa and a quality of 95 percent with a mass flow rate of 20,000 kg/h. It is to be cooled by water from a nearby river by circulating the water...
-
Read a current article about air cargo safety and security from one of the following periodicals: Aviation Week and Space Technology EURO Journal on Transportation and Logistics Expert Systems with...
-
Mission Foods produces two flavors of tacos-chicken and fish-with the following characteristics. Selling price per taco Variable cost per taco Expected sales (tacos) Fish Chicken $ 3.20 $ 5.30 1.60...
-
1.In 1987, the United Nations Commission defined sustainability as; Brundtland "Meeting the needs of the present without compromising the ability of future generations to meet their own needs."...
-
Explain whether our country is in an inflationary gap or a recessionary gap by the placement of the aggregate supply and aggregate demand curve in terms of the long run aggregate supply curve? How do...
-
In October, Pine Company reports 20,800 actual direct labor hours, and it incurs $115,460 of manufacturing overhead costs. Standard hours allowed for the work done is 25,100 hours. The predetermined...
-
Find the maximum of: Z = 4x + 10x2 Subject to the constraints: 2x1 + x 50 2x1 + 5x2 100 2x1 +3x290 and X, X 0
-
Real Cool produces air conditioners in two departments: Assembly and Finishing. Budgeted information follows. Department Assembly Finishing Budgeted Cost $414,000 21,000 Allocation Base Machine hours...
-
A 4.5 m long steel bar (E-210 GPa) of 85 mm by 85 mm square cross section rest on a rubber foundation (k = 25 MPa). If a concentrated load P = 55 kN is applied at the left end of the beam, determine;...
-
You continue to work in the corporate office for a nationwide convenience store franchise that operates nearly 10,000 stores. The per- store daily customer count (i.e., the mean number of customers...
-
What are five common methods for distributing partnership earnings?
-
What is the purpose of the owners' equity statement?
-
What account is debited when a partner withdraws cash for personal use?
Study smarter with the SolutionInn App