The Lamesa Corporation builds tabletop replicas of some of the most famous resorts in the Philippines....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Lamesa Corporation builds tabletop replicas of some of the most famous resorts in the Philippines. The company is highly automated, and thus maintenance cost is a significant organizational expense. The company's owner has decided to use machine hours as a basis of predicting maintenance costs and has gathered the following data from the prior 8 weeks of operations: Required: Numbe r of MH 3,000 4,500 8,000 6,000 13,500 Maintenance Costs a. Variable cost rate Quarter S 9,800 12,900 01 18,100 02 03 b. Total fixed costs c. If the company expects to use 8.200 machines hours next month, how much us the estimated maintenance costs. Units Produced 2. One of the products of La Union Corporation goes through a glazing process. For the last six quarters, the cost of the glazing process was observed in relation with the number of units produced as tabulated below: 00 00 00 8 5 1,0 Total Cost 27,0 00 20,0 00 Numbe r of MH 31,0 9,000 00 Maintenance Costs 3,500 24,800 10,400 5,500 13,000 7,000 16,000 Quarters 04 05 06 Units Produce d 0 0 0 40 60 90 Total Cost 19,0 00 24,0 00 29,0 00 Required: a. b. Express the cost data in "a" above in the form Y=a + bx c. Assume the company processes 1,120 units in the next quarter, how much is the expected glazing cost? Using the least-squares method, calculate the variable cost rate and the total fixed costs elements of the glazing process The Lamesa Corporation builds tabletop replicas of some of the most famous resorts in the Philippines. The company is highly automated, and thus maintenance cost is a significant organizational expense. The company's owner has decided to use machine hours as a basis of predicting maintenance costs and has gathered the following data from the prior 8 weeks of operations: Required: Numbe r of MH 3,000 4,500 8,000 6,000 13,500 Maintenance Costs a. Variable cost rate Quarter S 9,800 12,900 01 18,100 02 03 b. Total fixed costs c. If the company expects to use 8.200 machines hours next month, how much us the estimated maintenance costs. Units Produced 2. One of the products of La Union Corporation goes through a glazing process. For the last six quarters, the cost of the glazing process was observed in relation with the number of units produced as tabulated below: 00 00 00 8 5 1,0 Total Cost 27,0 00 20,0 00 Numbe r of MH 31,0 9,000 00 Maintenance Costs 3,500 24,800 10,400 5,500 13,000 7,000 16,000 Quarters 04 05 06 Units Produce d 0 0 0 40 60 90 Total Cost 19,0 00 24,0 00 29,0 00 Required: a. b. Express the cost data in "a" above in the form Y=a + bx c. Assume the company processes 1,120 units in the next quarter, how much is the expected glazing cost? Using the least-squares method, calculate the variable cost rate and the total fixed costs elements of the glazing process
Expert Answer:
Answer rating: 100% (QA)
a To calculate the variable cost rate and total fixed costs using the highlow method 1 Identify the ... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
La Mias Casas builds replicas of residences of famous and infamous people. The company is highly automated, and the new accountant-owner has decided to use machine hours as the basis for predicting...
-
La Mias Casas builds replicas of residences of famous and infamous people. The company is highly automated, and the new accountant-owner has decided to use machine hours as the basis for predicting...
-
Is the State of Michigan justified in advertising the prize amount as $1.586 billion? Explain.
-
Two forces F 1 and F 2 act on the bolt. If the resultant force F R has a magnitude of 50 lb and coordinate direction angles ? = 110? and ? = 80?, as shown, determine the magnitude of F 2 and its...
-
How does leverage work in reverse to hasten the bursting of a bubble?
-
Figure P25.17 shows a 10-cm-diameter loop in three different magnetic fields. The loop's resistance is \(0.10 \Omega\). For each case, determine the induced emf, the induced current, and the...
-
The condensed income statements through income from operations for Dell Inc. and Apple Computer, Inc., are reproduced below for recent fiscal years (numbers in millions of dollars). Prepare...
-
All of the following help to develop informal networks that play an important role in an organization EXCEPT for: Group of answer choices a Virtual communities b Job rotation c Performance reviews d...
-
Asbat Pharmaceuticals (Asbat) is a leading pharmaceutical company that has been in existence for 22 years. Asbat has a calendar year-end and is audited annually. Asbat only operates in the United...
-
What do coaches expect to gain from coaching? And how will we know at the end if these benefits are realised? How would you define coaching? What does coaching mean to you as a Coach and as a...
-
Compare our hospital's ratio numbers to the most recent Optum Median hospital numbers (provided). For each ratio, is our hospital better or worse than the median hospital? explain what purpose is...
-
Rewrite the minimum number of lines of VHDL code to properly model a register's asynchronous reset. In the table below, rewrite the minimum number of lines so that code correctly simulates. library...
-
Bob Hill's hourly rate is $25.00, and he worked 39 regular hours during the week. What is his income tax and gross pay for the month?
-
MCK Inc. purchased on January 1, 2021, $600.000. 6% bonds of Aguirre Co. for $536,621. The bonds were purchased to yield 8% interest. Interest is payable semiannually on June 30 and December 31. The...
-
want it to calculate the miles ran with using minutes ran per day of the week then total each day and then give an average as the print out. //This program will calculate the number of minutes ran...
-
Journal entries are required July JnA A 4 Purchased merchandise from Jones Company for $12,000 under credit terms of 1/15, n/30, FOB factory. Sold-merchandise to Terra Co. for $1,600 under credit...
-
What is the difference between adsorption and absorption?
-
Go to your university's Web site and review the various organizational units within the university. Assuming no transfer pricing exists, make a list of the units that you believe would be classified...
-
1. Using earnings management techniques to generate materially misleading financial statements 2. Achieving the low-cost producer strategy at any cost 3. Retaliating against whistle-blowers within an...
-
Roddickton Manufacturing Co. has gathered the following information to develop predetermined OH rates for 2010. The company produces a wide variety of energy-saving products that are processed...
-
Consider the common problems with project cost estimation and recall a project with which you have been involved. Which of these common problems did you encounter most often? Why?
-
This chapter suggests that estimating project costs is a challenging process that can resemble an art form as much as science. Describe the different methods used to estimate costs on a project. How...
-
Explain the concept of activity-based costing. What are the steps involved in this process?
Study smarter with the SolutionInn App