Mario manufactures electric mixers to be used in restaurants to mix drinks. The following mixed costs and
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Mario manufactures electric mixers to be used in restaurants to mix drinks. The following mixed costs and direct labor hours were incurred for 19X1:
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Supervision Direct Month cost labor hours January $ 98,000 39,000 February 80,000 33,000 March 100,000 41,000 April 122,000 48,000 May 108,000 46,000 June 81,000 31,000 July 90.000 37,000 August 88,000 35,000 September 90,000 42.000 October 91,000 42,000 November 121,000 51,000 December 110,000 47,000 Required: a Determine the variable cost portion per unit and total fixed cost portion of supervision cost using the high-low method. b Based on your answer in part a. project the supervision cost for January 19X2, assuming that Mario anticipates that 38,000 direct labor hours will be incurred for that month.
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Related Book For
Cost Accounting Concepts And Applications For Managerial Decision Making
ISBN: 9780070103108
2nd Edition
Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg
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