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In the Putahe Manufacturing Company, at an activity level of 82,000 machine hours, total overhead costs were $246,460. Of this amount, utilities were $43,460 (all
In the Putahe Manufacturing Company, at an activity level of 82,000 machine hours, total overhead costs were $246,460. Of this amount, utilities were $43,460 (all variable) and depreciation was $65,000 (all fixed). The balance of the overhead cost consisted of maintenance cost (mixed). At 122,000 machine hours, maintenance costs were $154,000. Assume that all of the activity levels mentioned in this problem are within the relevant range.
Do not enter dollar signs or commas in the input boxes.
Round all answers to 2 decimal places.
a) The variable cost for maintenance per machine hour is:
Maintenance cost for 82,000 hours: $Answer
Variable cost for maintenance per machine hour: $Answer
b) The total fixed overhead cost for Putahe Manufacturing is:
Depreciation: $Answer
Fixed maintenance cost: $Answer
Total fixed overhead: $Answer
c) If 127,000 machine hours of activity are projected for the next period, total expected overhead cost would be:
Utilities cost: $Answer
Maintenance costs (variable): $Answer
Total fixed overhead: $Answer
Total costs: $Answer
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