User Account

All Pages

Calculate the variable cost per machine hour for maintenance

Assignment Help Managerial Accounting
Reference no: EM132954705

Demco Berhad produces a single product and used flexible budgetary control system as part of company's planning. The company assigns the manufacturing overhead costs to production on the basis of machine hours.

Below is part of the budgeted overhead cost based on machine hours:

Capacity 80% 100%
Machine hours 40,000 50,000
Maintenance RM34,000 RM46,000
Supplies RM28,000 RM30,000

During April 2020, the company operated at 85% of machine hours and the actual overhead cost for maintenance and supplies are RM38,750 and RM26,375 respectively. The maintenance cost is a semi variable where there is a step up cost of RM5,000 in the fixed cost element for volumes in excess of 40,000 machine hours. The actual fixed costs remains as budgeted.

Problem 1: Calculate the variable cost per machine hour for maintenance cost above.

A. RM0.20 per machine hour
B. RM0.60 per machine hour
C. RM0.70 per machine hour
D. RM1.20 per machine hour

Reference no: EM132954705

Questions Cloud

What is learned from the adaptive questionnaire : What is learned from the adaptive questionnaire
Calculating the safety stock and cycle stock holding : A brick maker (BM) in Alberta mixes dry ink into its bricks to make them brown. BM"s demand for dry ink is 60 tons per year. Currently. BM buys the dry iolk fro
What will be the income assigned to controlling interest : Net Income of Sonny amounted to P150,000 while operating income of Panasonic amounted to P225,000. What will be the income assigned to controlling interest
What do the cash flow and ageing : What do the cash flow and ageing summaries tell us?
Calculate the variable cost per machine hour for maintenance : Calculate the variable cost per machine hour for maintenance cost. Demco Berhad produces a single product and used flexible budgetary control system
What amount of consolidated net income will be assigned : Based on the information given above, what amount of consolidated net income will be assigned to the controlling shareholders for 2019
Which frameworks is used in the development of overall model : Which the field of organisational behaviour examines such questions as the nature of leadership, effective team development, and
Explain assignable variation in the process : A sample statistic that falls inside the control limits suggests there is assignable variation in the process. Please tell whether it is true or false. If false
Understanding the customers and competitors : Elaborate how by understanding the customers and competitors' products and services can result in new product opportunities for a company.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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