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32. Nas Corporation's managers in the stamping department have been studying the overhead cost and the relationship with machine hours. Data from the most recent 12 months. Month Overhead Machine hours January 5,030 2,730 February 1,600 600 March 7.210 3,403 April 4,560 2.200 May 6.880 3,411 June 6,520 2.586 July 6,230 3.364 August 5.570 2,411 September 7.728 3,960 October 5,810 2,897 November 4.580 2.207 December 6,010 2,864 The manager of the department has requested a regression analysis of these two variables. The staff person performing the analysis decided to exclude February, She observed the volume of activity was very low for that month because of two factors: A severe flue outbreak and an electrical fire that disrupted operations for about 10 working days. Using the high-low point method, compute the fixed cost. Nas Corporation's managers in the stamping department have been studying the overhead cost and the relationship with machine hours. Data from the most recent 12 months Month Overhead Machine hours January 5,030 2.730 February 1,600 600 March 7.210 3,403 April 4,560 2.200 May 6.880 3,411 June 6,520 2,586 July 6,230 3,364 August 5,570 2,411 September 7.728 3,960 October 2,897 5.810 November 4.580 2,207 December 6,010 2,864 The manager of the department has requested a regression analysis of these two variables. The staff person performing the analysis decided to exclude February. She observed the volume of activity was very low for that month because of two factors: A severe flue outbreak and an electrical fire that disrupted operations for about 10 working days Using the high-low point method, how much is the estimated overhead costs for 3,000 machine hours? 140,000 60 170 4. Peter Co. Makes shirts that it sells to retailers. The company uses a job order costing system in which predetermined overhead rates are used to apply factory overhead cost to jobs. The predetermined rate in the Sewing department is based on machine hours and in Cutting department is based on direct labor cost. The following estimates are made at the beginning of the year. Sewing Cutting Direct labor hours 24,000 120,000 Machine hours 10,000 Direct material cost 1,020,000 1,300,000 Direct labor cost 260,000 840,000 FOH Cost 1,204,000 1,470,000 Job 101 was started on February 1 and completed on February 25. The company's cost records show the following information concerning the job. Sewing Cutting Direct labor hours Machine hours Material used 664 Direct labor cost 1.360 At the end of the year, the records of the company show the actual cost and data for all jobs worked during the year Sewing Cutting Direct labor hours 20,000 124.000 Machine hours 130.000 18.000 Direct Material cost 860,000 1.360.000 Direct labor cost 216.000 872.000 FOH cost 1.140.000 1.500.000 Compute the factory overhead rate used in the Sewing Department during the year. 220 40 940 580 S. Peter Co. Makes shirts that it sells to retailers. The company uses a job order costing system in which predetermined overhead rates are used to apply factory overhead cost to jobs. The predetermined rate in the Sewing department is based on machine hours and in Cutting department is based on direct labor cost. The following estimates are made at the beginning of the year: Sewing Cutting Direct labor hours 24.000 120,000 Machine hours 140,000 10,000 Direct material cost 1,020,000 1,300,000 Direct labor cost 260.000 840,000 FOH Cost 1,204,000 1.470,000 Job 101 was started on February 1 and completed on February 25. The company's cost records show the following information concerning the job. Sewing Cutting Direct labor hours Machine hours Material used 940 Direct labor cost 580 1,360 At the end of the year, the records of the company show the actual cost and data for all jobs worked during the year Sewing Cutting Direct labor hours 20.000 124.000 Machine hours 130,000 18,000 Direct Material cost 860,000 1.360,000 Direct labor cost 216,000 60 170 220 40 664 872.000 FOH cost 1.140,000 1.500,000 Compute the factory overhead rate used in the Cutting Department during the year
