As part of his job as cost analyst, Max Thompson collected the following information concerning the operations of the Machining Department: Observation Machine-hours Total Operating Costs 4,700 5,060 4,180 4,500 4,250 January February March $43,800 $45,270 $42,535 April May $43,600 $42,890 June 5,120 $45,825

As part of his job as cost analyst, Max Thompson collected the following information concerning the operations of the Machining Department: Observation Machine-hours Total Operating Costs 4,700 5,060 4,180 4,500 4,250 January February March $43,800 $45,270 $42,535 April May $43,600 $42,890 June 5,120 $45,825

Name: Q) Use the high-low method to determine the estimating cost function w
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Description: Q) Use the high-low method to determine the estimating cost function with machine-hours as the cost driver. As part of his job as cost analyst, Max Thompson collected the following informationconcerning the operations of the Machining Department:Mach

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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As part of his job as a cost analyst, Max Thompson collected the following information concerning the operations of the Machining Department: Observation January February March TTT Machine-hours Total Operating Costs 4,000 4,600 3,800 4,400 4,500 $46,000 49,500 45,750 48,000 49,300 April May Required: a) Use the high-low method to determine the estimating cost function with machine hours as the cost driver.
Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity. Round your answers to two decimal places. Activity Overheadper Activity AnnualUsage OverheadRate perActivity Machine Setups $156,825 4,100 $fill in the blank 1 Machine Hours 352,750 14,110 $fill in the blank 2 Inspections 110,550 3,300 $fill in the blank 3
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Multiple Choice $107.46 per unit $110.71 per unit $66.19 per unit $67.82 per unit
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