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can someone solve this pls J. Q. Higgins, owner of Robin's Nest, wants to determine the cost behavior of labor and overhead. Higgins pays his
can someone solve this pls
J. Q. Higgins, owner of Robin's Nest, wants to determine the cost behavior of labor and overhead. Higgins pays his workers a salary; during busy times, everyone works to get the orders out. Temps (temporary workers hired through an agency) may be hired to pack and prepare completed orders for shipment. During slower times, Higgins catches up on bookkeeping and administrative tasks while the salaried workers do preventive maintenance, clean the lines and building, etc. Temps are not hired during slow times. Higgins found that workers' salaries, temp agency payments, rentals, utilities, and plant and equipment depreciation are the largest dollar accounts. He believes that workers' salaries and plant and equipment depreciation are fixed, temp agency payments are associated with the number of orders (since temp workers are used to pack and prepare completed orders for shipment), and electricity is associated with the number of machine hours. When the number of different parts stored by Robin's Nest exceeds the space in the materials storeroom, Higgins rents nearby warehouse space. He can rent as much or as little space as he wants on a month-to-month basis. Therefore, he believes warehouse rental payments are variable with the number of parts purchased and stored. The account balances for the past six months as well as the six-month total are as follows: Workers' Warehouse Temp Agency Payments Plant & Equipment Depreciation Salaries Rental Electricity January $7,500 $0 $150 $275 $2,200 February 7,500 600 350 385 2,200 March 7,500 1,100 325 705 2,200 April 7,500 1,350 340 745 2,200 May 7,500 1,750 335 765 2,200 June 7,500 1,500 210 725 2,200 Total $45,000 $6,300 $1,710 $3,600 $13,200 Plant & Workers' Temp Agency Warehouse Equipment Depreciation Salaries Payments Rental Electricity January $7,500 $0 $150 $275 $2,200 February 7,500 600 350 385 2,200 March 7,500 1,100 325 705 2,200 April 7,500 1,350 340 745 2,200 May 7,500 1,750 335 765 2,200 June 7,500 1,500 210 725 2,200 Total $45,000 $6,300 $1,710 $3,600 $13,200 Information on number of machine hours, orders, and parts for the six-month period follows: Machine Number of Number of Hours Orders Parts January 2,000 10 200 February 3,100 40 600 March 5,800 350 550 April 6,200 400 580 May 6,900 490 570 Machine Number of Number of Hours Orders Parts January 2,000 10 200 February 3,100 40 600 March 5,800 350 550 April 6,200 400 580 May 6,900 490 570 June 6,000 390 350 Total 30,000 1,680 2,850 Required: 1. Calculate the monthly average account balance for each account. When required, round your answers to the nearest dollar and use your rounded answers in all subsequent computations. Average workers' salaries Average temp agency payment 1,050 Average warehouse rental Average electricity Average depreciation Average workers' salaries Average temp agency payment 1,050 Average warehouse rental Average electricity Average depreciation Calculate the average monthly amount for each of the three drivers. When required, round your answers to the nearest whole number. Average machine hours Average number of orders Average number of parts 2. Calculate fixed monthly cost and the variable rates for temp agency payments, warehouse rent, and electricity. If required, round your answers to the nearest cent and use the rounded answers in subsequent computations. Average fixed monthly cost Variable rate for temp agency per order Variable rate for warehouse rental per part Variable rate for electricity per machine hour Express the results in the form of an equation for total cost. 2. Calculate fixed monthly cost and the variable rates for temp agency payments, warehouse rent, and electricity. If required, round your answers to the nearest cent and use the rounded answers in subsequent computations. Average fixed monthly cost Variable rate for temp agency $ per order Variable rate for warehouse rental per part Variable rate for electricity per machine hour Express the results in the form of an equation for total cost. Monthly cost (orders) + $ (parts) + (machine hours) 3. In July, Darnell predicts there will be 420 orders, 240 parts, and 6,000 machine hours. What is the total labor and overhead cost for July? Round interim computations to 1 decimal place and round final answer to the nearest dollar. 4. What if Darnell buys a new machine in July for $24,000? The machine is expected to last 10 years and will have no salvage value at the end of that time. What part of the cost equation will be affected? Fixed cost How will this part of the cost equation be affected? It will be increased What is the new expected cost in July? When required, round your answer to the nearest dollar. 4. What if Darnell buys a new machine in July for $24,000? The machine is expected to last 10 years and will have no salvage value at the end of that time. Wha cost equation will be affected? Fixed cost How will this part of the cost equation be affected? It will be increased What is the new expected cost in July? When required, round your answer to the nearest dollar
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