Assume that the overhead cost above consists of utilities

Assignment Help Accounting Basics
Reference no: EM13510273

Golden Company's total overhead cost at various levels of activity are presented below:

Month Machine-Hours Total Overhead Cost
March 53,000 $206,910
April 43,000 $179,210
May 63,000 $234,610
June 73,000 $262,310


Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 43,000 machine-hour level of activity is as follows:





Utilities (variable) $ 68,800
Supervisory salaries (fixed)
46,000
Maintenance (mixed)
64,410



Total overhead cost $ 179,210







The company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

Estimate how much of the $262,310 of overhead cost in June was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $262,310 consisted of utilities and supervisory salaries. Think about the behavior of variable and fixed costs within the relevant range.)

 

Reference no: EM13510273

Questions Cloud

What might have purpose of ge publicly announced cutback : In early 1992, GE announced that it would cut back its capital investment in Tungsram. What might have been the purpose of GE's publicly announced cutback?
Ordinary annuities is true : Which of the following two statements about ordinary annuities is/are true?
What fractional part of volume of the bullet is submerged : A lead bullet (? = 11.3 X 103 kg/m3) is placed in a pool of mercury (? = 13.6 X 103 kg/m3). What fractional part of the volume of the bullet is submerged
Compute actual direction of the sun : An underwater scuba diver sees the Sun at an apparent angle of 42.0° from the vertical. What is actual direction of the Sun
Assume that the overhead cost above consists of utilities : Estimate how much of the $262,310 of overhead cost in June was maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $262,310 consisted of utilities and supervisory salaries.
Determine the volume that sticks out of the water : An object with a density of 461.0 kg/m3 and a mass of 2083.0 kg is thrown into the ocean. Find the volume that sticks out of the water
Find how much time elapses before compass hits the ground : A hot-air balloon is rising upward with a constant speed of 2.50m/s. when the balloon is 3.00 m above the ground, How much time elapses before the compass hits the ground
Find the potential energy of the box relative to the ground : A 1.5 kg box slides down a frictionless incline of angle . It starts from rest at t=0 at the top of the incline at a height of 22 m above the ground. What is the potential energy of the box relative to the ground at t=0
What is deindustrialization : What is deindustrialization? What is a service economy? Describe the major aspects of service sector jobs and how they have changed the lives of workers in the United States.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What should be the corrected net incomes for 2010 and 2011

A company discovered in 2012 that it had overstated the inventory balance for Dec 31, 2010 by $10,000. The company had (incorrectly) reported Net Income to be $300,000 for 2010, and $400,000 for 2011. What should be the corrected Net Incomes for 2..

  Asset and liability in the financial records

Johntech accounted for the lease as a capital lease and recorded an asset and a liability in the financial records. The asset recorded under this lease should properly be amortized over:

  Unfavorable variances as a negative number

What is Sprinkle and Co's total materials cost variance (i.e., the variance due to purchase PLUS the variance due to use) for the month of March? Enter favorable variances as a positive number and unfavorable variances as a negative number.

  Discuss how inflation or purchasing power impacts stated or

explain how inflation or purchasing power impacts stated or nominal interest rates.what are the pros and cons of

  Three different partnership interests

Consider three people with three different partnership interests, and determine each individual's basis for partnership interest in the following three independent situations.

  In january 2013 neville estimates that the machinery will

neville company bought machinery on january 1 2010 at a cost of 400000. the machinery had an estimated life of 8 years

  Evaluate the medical claim

Consider that the Millers' adjusted gross income was $50,000, how much of a medical expense deduction may the Millers claim on their joint return

  Rand medical manufactures lithotripters lithotripsy uses

rand medical manufactures lithotripters. lithotripsy uses shock waves instead of surgery to eliminate kidney stones.

  Derivation from prices in observed transactions

The fair value of which of the following was determined using a Level 3 input? A building whose price per square foot is derived from prices in observed transactions involving similar buildings in similar locations.

  Example of permanently restricted resources

Provide examples of resources that are temporarily restricted as to: (a) purpose; (b) time; and (c) the occurrence of a specific event. Provide an example of permanently restricted resources.

  Compute earnings per share for the year

Frantic fast foods had earnings after taxes of $390000 in the year 2009 with 300000 shares outstanding. On January 1, 2010, the firm issued 25000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings ..

  Prepare a multiple-step income statment

Need to prepare a multiple-step income statment for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles(including format and terminology).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd