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Hi, first of all, thank you for helping me with these problems. Requirement: 1.classify costs using new cost classification categories and separate mixed costs using
Hi, first of all, thank you for helping me with these problems.
Requirement:
1.classify costs using new cost classification categories and separate mixed costs using the high-low method.
Problem 1: For this problem,
--For total Prime Costs you should get $1,614,000
--For total Product Costs you should get $2,521,500
--For total Period Costs you should get $164,000
Problem 2: For this problem,
--For (A) VCu you should get $3.60.
Thanks again for your help! Have a nice day.
Wachowski Company reported these cost data for the year 2017, Factory maintenance costs Direct labor, wages Direct labor, health insurance Indirect labor, health insurance Health insurance for production supervisor Administrative costs Rental of office space for administrative staff Sales commissions Direct material Indirect materials Advertising expense Depreciation on factory building Indirect labor, wages Production supervisor's salary $ 90,000 352,000 32,000 15,000 6,500 55,000 17,500 52,500 1,230,000 632,000 39,000 62,000 70,000 32,000 Use the data to complete the following table. Total prime costs Total manufacturing overhead costs Total conversion costs Total product costs Total period costs This cost data from Hickory Furniture is for the year 2017, Month January February March April May June July August September October November December Number of Tables Produced 550 710 650 470 512 625 805 750 675 Factory Utility Expenses $2,063 2,663 2,438 1,823 1,920 2,344 3,019 2,813 2,531 1,969 3,281 2,569 525 875 685 A. Using the high-low method, express the company's utility costs as an equation where X represents number of tables produced. B. Predict the utility costs if 800 tables are produced. C. Predict the utility costs if 600 tables are producedStep by Step Solution
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