Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the answer as soon as possible Academy Products manufactures a variety of custom components for use in aircraft navigation and communication systems. The

I need the answer as soon as possible image text in transcribed

Academy Products manufactures a variety of custom components for use in aircraft navigation and communication systems. The management accountant has asked for your help in estimating fixed and variable overhead costs for the Academy's Canterbury factory. The accountant believes that the best cost driver for estimating the overhead costs is the number of machine hours. Monthly data on machine hours and overhead costs for the last year are as follows: Month Machine Hours Overhead costs Sep 900,000 Oct 765,000 Nov 665,000 Dec 990,000 Jan 800,000 Feb 750,000 $1,070,000 $1,220,000 $795,000 $1,261,000 $920,000 $1,100,000 $1,230,000 $1,450,000 $1,645,000 $800,000 $1,110,000 Mar 815,000 Apr 935,000 May 833,000 Jun 590,000 Jul 750,000 Aug 580,000 $810,000 (a) Estimate the unit variable cost per machine hour and the monthly fixed cost using the high-low method and write the total cost formula. (Show your working). (5 marks) (b) Using the total cost formula derived in (a), estimate the total overhead cost for September if the machines are operating for 850,000 hours. (Show your working). (1 mark)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: DeFond, Mark

3rd Edition

1618534432, 9781618534439

More Books

Students also viewed these Accounting questions

Question

1. Pupils can be trusted to work together without supervision.

Answered: 1 week ago