Calculate the fixed cost of maintenance

Assignment Help Accounting Basics
Reference no: EM132715068

Question: Andover Company makes weather balloons. The company controller wanted to calculate the fixed and variable costs associated with the maintenance costs incurred by the factory. Data for the past six months were collected.

Month       Maintenance cost       Machine hours

January           $10,120                   526

February             9,560                   389

March                 9,712                   412

April                 10,460                   569

May                  10,226                   541

June                  9,686                    399

Required: A. Using the high-low method, calculate the fixed cost of maintenance and the variable rate per machine hour.

Fixed cost$

Variable rate$ per machine hour

B. Using the high-low method, construct the cost formula for the total maintenance cost.

Total maintenance cost=Fixed cost+Variable cost =($ per hour X no. of machine hours)

C. Calculate the budgeted cost for maintenance assuming that 485 hours are worked next month.

Reference no: EM132715068

Questions Cloud

What was the profit or loss on disposal : During the year to 30 June 20X7, Eugene Ltd sold a non-current asset for $36,000. It had been acquired three years ago at a cost of $180,000.
Prepare variance analyses for the variable and fixed costs : Prepare variance analyses for the variable and fixed costs. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable.)
Collect ads for any four different brands : Collect ads for any four different brands (Print ad) in an identical product category (e.g., detergent, cars, toothpaste, etc).
Develop disaster recovery plan for organization : Develop a disaster recovery plan for an organization. There are many different templates available online for you to use as reference and guidance
Calculate the fixed cost of maintenance : Andover Company makes weather balloons. The company controller wanted to calculate the fixed and variable costs associated with the maintenance costs incurred.
Describe the key elements of ikea globally successfully : Describe the key elements of IKEA's globally successfully business model. What are the sources of IKEA's competitive advantage?
Make a standard cost summary showing the standard unit cost : The normal capacity of the Malloy Company is 20,000 direct labor hours and 10,000 units. Make a standard cost summary showing the standard unit cost.
What is effective annual interest rate is client paying loan : Your client has just purchased a business for $200,000 and made a cash payment for 20% of the purchase price. What is effective annual interest rate
Develop an email business email format : Develop an email following business email format addressed to your faculty discussing: The steps of the strategic planning process with regard to organizing

Reviews

Write a Review

Accounting Basics Questions & Answers

  What accounts and dollar amounts would be reported

What accounts and dollar amounts would be reported on the Income Statement (not "Sales") and Balance Sheet (not "Cash") at March 31, 2015

  Discuss on intensity and ethical leadership of organization

Explain what you think this means in the context of moral intensity and ethical leadership of organizations

  Write a report to the chief finance officer

You are a manager at an audit company. You are currently auditing XYZ Ltd. XYZ Ltd currently has a number of material operating leases reported in the 2015 financial statements.

  What is the amount of gain that should be reported

Straight-line depreciation would have been $12,000. What is the amount of gain that should be reported under Secs. 1231 and 1245 (recapture)

  Discuss what considerations should the manager take

social responsibilities to employees and fiduciary responsibilities to shareholders, what considerations should the manager take into account when making

  Prepare a post-closing trial balance

Prepare a statement of stockholders' equity for the year ended December 31, 20Y5. During the year, common stock of $25,000 was issued.

  Acc determine the changes in assets liabilities and equity

Analyse the company Callaway Golf. The ticker symbol is ELY. Complete the following requirement scenario Select one U.S. publicly traded company and reviews its most recent Annual Report. (You may use one of the three companies you selected for your ..

  Evaluate how many kilograms of direct material purchased

Assume for a firm that budgeted product, If 30 June inventory of materials was 5000 kg, how many kilograms of direct material should be purchased during July?

  Summary of cash disbursements for the quarter

Customers paying in the month of sale receive a 2% cash discount. Summary of cash disbursements for the 4th quarter

  What is the present value of 500 per year for ten years at

what is the present value of 500 per year for ten years at 12 percent assuming a regular or ordinary

  Prepare the consolidation entry recorded by Parent Company

Using scenario in #1 - downstream sale - prepare the consolidation entry recorded by Parent Company in 2011 related to the 2011 intercompany transfer

  Earnings per share assuming bond conversion

During the year 2010, the corporation earned $600,000 after deducting all expenses. The tax rate was 30%. Calculate 1. Earnings per share 2. Earnings per share assuming bond conversion

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