Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please use the same format to answer the question so that it is easy to follow. Adriana Corporation manufactures football equipment. In planning for next
Please use the same format to answer the question so that it is easy to follow.
Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. Month Labor-Hours Machine-Hours 1 720 1,354 2 720 1,402 3 670 1,523 4 760 750 1,455 5 200 780 1,590 260 b 6 760 1,574 7 750 750 1,400 725 8 735 1,319 9 710 1,459 10 785 1,553 11 675 1,292 12 1,618 Overhead Costs $ 102,657 103,804 109,976 108,313 116,211 114,487 106,952 102,029 106,429 113,061 102,201 115,404 700 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? Complete this question by entering your answers in the tabs below. Required A Required B Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round "Variable cost" answer to 2 decimal places.) 10 11 12 785 675 700 1,553 1,292 1,618 113,061 102,201 115,404 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? Complete this question by entering your answers in the tabs below. Required A Required B Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round "Variable cost" answer to 2 decimal places.) Variable cost (per machine hour) Fixed cost 7 8 9 10 11 12 750 735 710 785 675 700 1,400 1,319 1,459 1,553 1,292 1,618 106,952 102,029 106,429 113,061 102,201 115,404 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? Complete this question by entering your answers in the tabs below. Required A Required B Managers expect the plant to operate at a monthly average of 1,600 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation? Overhead costsStep 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