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In Alpha manufacturing company, the machine hours for one month amounted 1,000 and total cost of maintenance amounted dollar 5,000. If the machine hours(cost driver)

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In Alpha manufacturing company, the machine hours for one month amounted 1,000 and total cost of maintenance amounted dollar 5,000. If the machine hours(cost driver) is duplicated, the total cost will increase by 50 percentage. Required: Estimate the cost function and comment on it. Estimate the machine hours if total cost of maintenance amounted dollar 10000. Question Two: Utility costs at Service. Inc are a mixture of fixed and variable components Records indicate that utility costs are an average of dollar 0 40 per hour at an activity level of 9,000 machine hours and dollar 0.25 per hour at an activity level of 18,000 machine hours. Assuming that this activity is within the relevant range. Required: What is the expected total utility cost if the company works 13,000 machine hours? Question Three: The Rocky Catering Company specializes in preparing Mexican dinners that it freezes and ships to restaurants in the Denver area When a customer orders an item, the restaurant heats and services it. The budget data for 2005 are The Company prepare the items in the same kitchens, delivers them in the same trucks. Therefore, decisions about the individual products do not affect the fixed costs of dollar 735,000. Required: Compute the planned net income for 2005. Compute the break-even point in units, assuming that the company maintains its planned sales mix. Question Four: Hargenrade Inc. produces and sells two products. During the most recent month, Product P02S's sales were dollar 24,000 and its variable expenses were dollar 7,920. Product O50U's sales were dollar 41,000 and its variable expenses were dollar 14,180. The company's fixed expenses were dollar 40,350. Required: Determine the overall break-even point for the company in total sales dollars

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