Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 (of 5) value: 10.00 points Echeveria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year,

image text in transcribed
Question 5 (of 5) value: 10.00 points Echeveria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year, according to the number of machine-hours worked in its production facility These costs (in Argentinian pesos) at high and low levels of activity over recent years are given below Level of Activity Low 68,200 High 98,200 Total factory overhead costs 390,912 pesos 470,712 pesos The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 68,200 machine-hours level of activity as follows: Indirect materials (variable)126,170 pesos Rent (fixed) Maintenance (mixed) 167,000 97,742 Total factory overhead costs 390,912 pesos For planning purposes, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required 1. Estimate how much of the factory overhead cost of 470.712 pesos at the high level of activity consists of maintenance cost. (Hint. First determine how much of the 470,712 pesos cost consists of indirect materials and rent. Think about the behaviour of variable and fixed costs.) (Do not round intermediate pesos

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Challenges In Advanced Management Accounting

Authors: The Open University

1st.0th Edition

B01D8X506Y

More Books

Students also viewed these Accounting questions

Question

What is composting, and how does it fit into solid waste disposal?

Answered: 1 week ago

Question

mple 10. Determine d dx S 0 t dt.

Answered: 1 week ago

Question

Identify five strategies to prevent workplace bullying.

Answered: 1 week ago