Question
Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last
Sonor Systems undertakes its own machine maintenance. The depreciation on the equipment is $20,000 per year and operating cost is $2 per machine hour. Last year 275,000 machine hours were used to produce 100,000 units. Develop a cost equation for the total machine maintenance cost. Y=$275,000 Y=$20,000 Y =$20,000 +$2 MHR Y=$2 MHR Compute the total variable machine maintenance cost last year. $275,000 $240,000 $220,000 $550,000 Compute the total machine maintenance cost for last year. $570,000 $550,000 $420,000 $20,000 What is the total maintenance cost per unit produced? $0.55 $4.20 $5.50 $5.70 If 300,000 machine hours had been worked last year, what would be the total machine maintenance cost? $600,000 $620,000 $420,000 $220,000 A company usually processes 20,000 orders at a total cost of $300,000. During the year, only 16,000 orders were processed. What is the cost of unused activity? $300,000 $240,000 $30 $60,000 What is the cost of resource usage? $300,000 $240,000 $30 $60,000 The following cost functions were developed for manufacturing overhead costs: Manufacturing Overhead Cost Cost Function Electricity $200+$20 per direct labor hour Maintenance $400+$30 per direct labor hour Supervisors' salaries $20,000 per month Indirect materials $16 per direct labor hour If January production is expected to be 2,000 units requiring 3,000 direct labor hours, estimated manufacturing overhead costs would be $20,733. $198,000. $152,600. $218,600.
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