Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Unique Ltd., a manufacturing firm, manufactures brakes. The company has supplied information from its accounting records for the last year. No. of Factory Month Brakes
Unique Ltd., a manufacturing firm, manufactures brakes. The company has supplied information from its accounting records for the last year. No. of Factory Month Brakes Overhead Jan 220,000 $430,000 Feb 190,000 $360,000 Mar 275,000 $509,300 Apr 200,000 $360,000 May 240,000 $432,000 Jun 215,000 $366,000 Jul 260,000 $518,000 Aug 180,000 $316,000 Sep 230,000 $380,000 Oct 210,000 $374,000 Nov 225,000 $406,000 Dec 176,000 $344,000 Part 1: Using the high low method, what is the variable factory overhead per brake? A Using the rounded answer which you just input (above), what is the fixed cost for factory overhead? Part 2: If the company increases their production of brakes by 45% in any given month, would the factory overhead cost per brake increase, decrease, or stay the same? Enter the number 1 if it would increase. Enter the number 2 if it would decrease. Enter the number 3 if it would stay the same. Part 3: ASSUME If the total cost of factory overhead equals $49,000 + (1.75 * number of brakes manufactured). What would total cost equal if the company manufacturers 218,400 brakes? Part 4: If the total cost of factory overhead equals $431,000 and the company manufacturers 218,400 brakes, what is the total factory overhead cost per brake manufactured
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