Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

why did the cost account decide that salaries and depreciation were fixed? Calculate the average account balance for each of the 5 accounts and calculate

  1. why did the cost account decide that salaries and depreciation were fixed?
  2. Calculate the average account balance for each of the 5 accounts and calculate the average monthly amount for each of the three drives.
  3. Calculate the fixed overhead and variable rates for each of the costs. equation for the total overhead cost.
  4. In January, 490 moves; 4,375 machine hours, and 220 purchase orders were expected. what is the amount of overhead predicted?
  5. image text in transcribed
20pts . The Hamilton Mills Company cost accountant wants to determine the cost behavior for overhead , Based on observation and discussion with the plant workers , the following , accounts have been identified as the most relevant ; Supervisor salaries and depreciation are believed to be generally fixed ; Indirect labor , Utilities , and Purchasing, are generally believed to be variable ; Indirect labor primarily Is responsible for moving, materials ; Utility cost is primarily These accounts and their balances are given below :` caused by the electricity to run machinery ; and Purchasing costs are driven by the number of purchase orders , January Indirect Labor Utilities February $ 28, 500 Purchasing Supervisory \\ Depreciation Salaries 31, 6001 $: 21, 000 on Plant and Copyright Cengage Learning . Powered by Cognoro . 21 , 200 $: 76, 400| Equipment 70, 809\\ $ 40, 0001 16, 000\\ 8: 13, 000 13 , 000* Page 195 March April 33, 600| 25, 000 May 41 , 400| 25, 000 75 , 200 80. 400 64, 000 13, 000 `June 40, 000\\ 25 , 000 |Total $209, 100| 25, 000 79. 800 55 , 600 3, 00 0 34 , 000| 79. 400 50, 800| 3,000 $ 145 , 2001 $ 462, 000 34, 000 $ 290, 400| 13, 0001 Information on the activities is given below :" $78, 000 # of moves machine purchase January hours orders 340 February 5 , 400 250 380 March 5 , 200 300 400 April 5 , 800 450 500 6 , 200 May 380 480 6 ,000 340 June 420 5, 600 200 Total 2 , 520 34 , 200 1, 920 Required :` 1 . Why did the cost accountant decide that salaries and depreciation were fixed ?! 2 . Calculate the average account balance for each of the 5 accounts and calculate the average monthly amount for each of the three drivers . 3 . Calculate the fixed overhead and variable rates for each of the costs . Write an equation for the total overhead cost . 4 . In January , 490 moves; 4 , 375 machine hour's , and 2 20 purchase orders were expected . What is the amount of overhead predicted ? USE \\SEURANATTE SHELFLT FUR

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

Accounting Equations & Answers

Authors: Barcharts, BarCharts Inc

1st Edition

1423218248, 9781423218241

More Books

Students also viewed these Accounting questions

Question

Distinguish between intrinsic and extrinsic teleology.

Answered: 1 week ago

Question

4. Similarity (representativeness).

Answered: 1 week ago