Question: Selected data about Pitkin Company's manufacturing operations at two levels of activity are given below: Number of units produced 10,000 Total manufacturing costs (includes

Selected data about Pitkin Company's manufacturing operations at two levels of activity

Selected data about Pitkin Company's manufacturing operations at two levels of activity are given below: Number of units produced 10,000 Total manufacturing costs (includes DM, DL, OH) $157,000 15,000 $225,000 Direct material cost per unit $4 $4 Direct labour cost per unit $6 $6 Required: 1. Calculate the overhead costs for each level of activity. 2. Using the high-low method, estimate the cost formula for overhead (Use the numbers you calculated in part 1 above). 3. Using the information above, estimate the total manufacturing costs given that the company plans to produce 13500 units next month.

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!

I am not sure if I did my income statement correctly. Can you also help me solve Cash Budget, Balance sheet, and Evaluation? Thank you. Darnell Manufacturing Company Mr. Darnell had promoted Jimmy...

Hello, I need the attached work completed by Saturday morning. 1 2 3 4 Walter Fields Week 5 Unit Cost under Variable Costing Direct Materials Direct labor Variable Manufacturing OH Variable Selling &...

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in...

Using the scenarios in case Exhibit 9, what role does leverage play in affecting the return on equity (ROE) for CPK? What about the cost of capital? In assessing the effect of leverage on the cost of...

I have to do an accounting assignment. I have attached the instructions, the questions, and pdf's containing the information requested for the questions. Company Estimates & Opinions Sanmina Corp...

MULTIPLE CHOICE: 1. Using the balanced scorecard approach, an organization evaluates managerial performance based on: a. A single ultimate measure of operating results, such as residual income. b....

can you solve the maths which are provided in doc file Question 1 Manufacturing Cost Schedule and Income Statement (10marks). This question relates to learning material and objectives from Online...

Please Provide a 2 to 3 page article review for each, there attached on this question. Your discussion should include a brief summary (including the big ideas or major points of the article) along...

Can you help me check if I did the Income Statement right? And please help me with the Cash Budget, Balance sheet, and Evaluation of the Budget. Thank you! Darnell Manufacturing Company Mr. Darnell...

can you please help me out with this assignment case study with the question ? UVA-F-1553 CALIFORNIA PIZZA KITCHEN Everyone knows that 95% of restaurants fail in the first two years, and a lot of...

On January 1, 2012, LED issues bonds with a face value of $300,000. These bonds have a stated interest rate of 4% and interest is paid annually on December 31. The bonds mature in four years. The...

George Taniwaki supervises information technology projects at Mountain High Research. He has adopted job costing techniques to monitor and control project costs. REQUIRED A. List the types of...

As the manager of a hospital, you are responsibile for distributing a limited budget among vasious departments. You must decide how much to allocate to new medical equipment, staff training and...

Consider the following four alternatives. Three are "do something" and one is "do nothing At the end of the 5-year useful life of B, a replacement is not made. If a 10-year analysis period and a 10%...

Two steady flow of air enters a control volume, shown in Fig. P6.37. One is 0.025 kg/s flow at 350 kPa, 150C, state 1, and the other enters at 350 kPa, 15C, both flows with low...

In Figure a small, solid, uniform ball is to be shot from point P so that it rolls smoothly along a horizontal path, up along a ramp, and onto a plateau. Then it leaves the plateau horizontally to...

Knowing that at the instant shown the angular velocity of rod AB is 15 rad/s clockwise, determine (a) The angular velocity of rod BD, (b) The velocity of the midpoint of rod BD. 200 mm 250 mm 200 600...

Two steady flows of air enters a control volume, shown in Fig. P6.80. One is 0.025 kg/s flow at 350 kPa, 150C, state 1, and the other enters at 450 kPa, 15C, both flows with low velocity. A single...

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $65,000 per year. Parveen is a full-time stay-at-home mom. Use the easy...

Using the nonworking spouse method, what should be the life insurance needs for a family whose youngest child is seven years old? (Obj. 1)

Use Exhibit 101 to find the average number of additional years a 20-year-old male and female were expected to live, based on the statistics gathered by the U.S. government as of 2004. (Obj. 1)