1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
leva [86]
3 years ago
8

Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet

ween activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations. MonthLabor-HoursMachine-HoursOverhead Costs 1 3,625 6,775 $513,435 2 3,575 7,035 518,960 3 3,400 7,600 549,575 4 3,700 7,265 541,400 5 3,900 7,955 581,145 6 3,775 7,895 572,320 7 3,700 6,950 535,110 8 3,625 6,530 510,470 9 3,550 7,270 532,195 10 3,975 7,725 565,335 11 3,375 6,490 503,775 12 3,550 8,020 564,210 Required: a. Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. b. Managers expect the plant to operate at a monthly average of 7,500 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation
Business
1 answer:
irga5000 [103]3 years ago
5 0

Answer:

Adriana Corporation

Using the High and Low method the Variable and Fixed portions of the Total Cost is:

Fixed Costs = $247,420

Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790

B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)

= $543,670

Explanation:

The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)

It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low

The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs

djsjsb

cvhjedskjb

gdggd

Download xlsx
You might be interested in
Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt
Andreyy89

Answer:

19.64%

Explanation:

The return on equity shall be determined through following mentioned formula:

Return on equity=Net profit/Equity

In the given question

Net profit=9.68%*$807,200=$78,136.96

Equity=Assets-Total Debt

          =$1,105,100-64%($1,105,100)

          =$397,836

Return on Equity=$78,136.96/$397,836

                           =19.64%

3 0
3 years ago
MARKETING PLEASE HELP
andre [41]

Answer:

The entire demand curve will shift upwards

Explanation:

SEE IMAGE ATTACHED

The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product.

3 0
3 years ago
The company you are investigating recorded fictitious revenues. What is the effect on the asset turnover ratio?
BARSIC [14]

In case fictitious revenues are recorded asset turnover ratio will increase.

The asset turnover ratio measures the performance of an organization's assets in producing revenue or income. It compares the dollar quantity of income (revenues) to its overall belongings as an annualized percent. hence, to calculate the asset turnover ratio, divide net income or revenue by the average total belongings.

Fictitious revenues contain the sale of goods or services that no longer arise. Fictitious invoices may be fake, but can also contain valid clients. A fictitious invoice may be prepared for a legitimate patron despite the fact that goods are not added or services have no longer been rendered.

Accounting ratios, an important subset of monetary ratios, are a group of metrics used to degree the performance and profitability of an employer based on its financial reports. They provide a way of expressing the relationship between one accounting information factor to any other and are the basis of ratio evaluation.

Learn more about asset turnover ratio here brainly.com/question/13401474

#SPJ4

5 0
1 year ago
Chapter 3 Homework Questions 3, 4 3. Balance Sheet. Construct a balance sheet for Sophie’s Sofas given the following data. What
Svet_ta [14]

Answer:

<u>BALANCE SHEET</u>

Assets                                            Liabilities

Cash                           10,000        Account Payable     17,000

Account Receivable 22,000        Long term               170,000

Inventory                 200,000       Total Liab                187,000

non-current assets  100,000        Equity                      145,000 (A)

total assets              332,000     Total liab + SE         332,000

Earnings before interest and taxes: 11,000 dolllars

Net income 8,000

Explanation:

(A) solve through the accounting equation

assets = laib + equity

332,000 = 187,000 + Equity  = 332,000 - 187,000 = 145,000

Q4

income tax expense: 2,000

rate 20%

Earnings before taxes x 20% = 2,000

EBT = 2,000 / 0.2 = 10,000

Net income : 10,000 - 2,000 = 8,000

EBIT: EBT + interest expense

10,000 + 1,000 = 11,000

5 0
3 years ago
Peter Parker, CEO at Spdey Enterprises, finds his profits at $8,000,000 inadequate for his Web-Slinger business. His production
Lady bird [3.3K]

Answer:

Spdey Enterprises

The percentage improvement in Sales to achieve the desired profit is:

c. 42.86% increase in sales.

Explanation:

a) Data and Calculations:

Normal profit level = $8 million

Expected profit level = $14 million

                                             Normal            Expected

Sales per year              $40,000,000          $57,142,857

Cost of purchases          16,000,000            22,857,143

Production costs            10,000,000             14,285,714

Variable costs               26,000,000            37,142,857

Total contribution        $14,000,000       $20,000,000

Fixed costs                      6,000,000           6,000,000

Profit level                     $8,000,000        $14,000,000

Expected Contribution = Expected profit level + Fixed Costs

Normal Contribution = 35% of Sales

Normal Variable costs = 65% (100% - 35%)

Expected Contribution = $20,000,000 = 35% of Sales

Therefore, Expected Sales = $57,142,857 ($20,000,000/35%)

Normal Sales = $40,000,000

Expected Sales = $57,142,857

Percentage increase = 42.86% ($57,142,857 - $40,000,000)/$40,000,000

4 0
3 years ago
Other questions:
  • A member of the park service believes the average number of cacti per square km in tucson, az in the year 2001 is less than the
    14·1 answer
  • Smith &amp; Jones, Accountants, agrees to perform an audit for Brick &amp; Mortar Stores, Inc.
    5·1 answer
  • The NOI is $1,000,000, the debt service is $800,000 of which $700,000 is interest, the depreciation expense is $250,000. What is
    8·1 answer
  • EA5.
    14·1 answer
  • If all other factors are equal, what will happen to the supply of a product if the price goes up?
    12·2 answers
  • A consumer currently spends a given budget on two goods, X and Y, in such quantities that the marginal utility of X is 10 and th
    11·1 answer
  • Let's assume that your favorite musician (who sells platinum records and has sold-out concerts) is a great cook. He also makes s
    9·1 answer
  • Bonner Automotive has shareholders' equity of $218,700. The firm owes a total of $141,000 of which 40 percent is payable within
    10·1 answer
  • Whom do price supports benefit and whom do<br> they hurt?
    5·1 answer
  • Anyone want to talk on for...tnite or g.m..<br> eet?????
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!