Question
January-18 $92,000 7,485 February-18 $104,000 9,062 March-18 $96,000 8,189 April-18 $77,000 5,410 May-18 $83,000 6,556 June-18 $95,000 7,850 July-18 $65,000 4,836 August-18 $92,000 6,828 September-18
| January-18 | $92,000 | 7,485 |
| February-18 | $104,000 | 9,062 |
| March-18 | $96,000 | 8,189 |
| April-18 | $77,000 | 5,410 |
| May-18 | $83,000 | 6,556 |
| June-18 | $95,000 | 7,850 |
| July-18 | $65,000 | 4,836 |
| August-18 | $92,000 | 6,828 |
| September-18 | $77,000 | 6,221 |
| October-18 | $105,000 | 8,238 |
| November-18 | $103,000 | 7,842 |
| December-18 | $96,000 | 8,086 |
| January-19 | $83,000 | 6,887 |
| February-19 | $100,000 | 8,438 |
| March-19 | $83,000 | 5,829 |
| April-19 | $79,000 | 5,639 |
| May-19 | $74,000 | 5,703 |
| June-19 | $81,000 | 6,455 |
| July-19 | $82,000 | 6,370 |
| August-19 | $74,000 | 5,684 |
| September-19 | $72,000 | 4,906 |
| October-19 | $73,000 | 5,026 |
| November-19 | $92,000 | 7,630 |
| December-19 | $65,000 | 4,014 |
| Random Inc. | Cost data for the last 3 years | ||
| Overhead Costs | Units Produced | ||
| January-17 | $78,000 | 5,679 | |
| February-17 | $91,000 | 6,751 | |
| March-17 | $100,000 | 7,539 | |
| April-17 | $78,000 | 5,335 | |
| May-17 | $89,000 | 6,480 | |
| June-17 | $93,000 | 7,630 | |
| July-17 | $87,000 | 6,331 | |
| August-17 | $94,000 | 7,998 | |
| September-17 | $81,000 | 5,943 | |
| October-17 | $85,000 | 7,081 | |
| November-17 | $100,000 | 7,694 | |
| December-17 | $104,000 | 8,903 | |
Show the equation used for Random to separate overhead into fixed and variable components - how much of the change in cost should this equation predict
What is the variable cost per unit for overhead? Round to the nearest cent
What is the fixed overhead cost per month? Round to the nearest dollar
Random analyzes their costs and finds the following:
| Each unit of inventory uses 2 gallons of materials and each gallon costs $3 |
| On average a worker can produce 16 units of product in an 8 hour shift and gets paid $180 for that shift |
| Each month Random spends $26,500 on selling and administration costs |
| Sales price for 2020 is estimated at $36 per unit |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting Creating Value in a Dynamic Business Environment
Authors: Ronald W. Hilton
9th edition
78110912, 978-0078110917
