Reference no: EM132598142
Supply costs atRpard Ltd, chain of gyms are listed below.the supply cost is a mixed cost.
Clients visit. Supply cost
February. 13801. 28607
March. 13753. 28575
April. 13968. 28707
May. 13780. 28588
June. 13963. 28704
July. 13166. 28093
August. 13351. 28241
September. 13334. 28229
October. 13867 28657
Question 1: Management believes that supply cost is a mixed cost that depends on client visits, using high low methods to estimate variable and fixed components of this cost, estimate will be closest to?
Watts company uses predetermined overhead rate to apply manufacturing overhead to jobs. Pre-determined overhead rate is based on labour cost in department. A and on machine hours in depth. B at the beginning of the year, the company made the following estimates
DeptA. DeptB
Direct labour cost 30000. 40000
Manufacturing oveh. 60000. 50000
Direct labour hours. 6000. 8000
Machine hours. 2000. 10000
Question 3: What predetermined overhead rates would be used in Dept A and Dept B?
4.beaver company used a predetermined overhead rate last year of R2per direct labour hour, based on an estimate of 25000,direct labour hours to be worked during the year. Actual costs and activity during the year were:
Actual manufacturing overhead cost incurred 47000
Actual direct labour hours worked 24000
Question 4: The underapplied or overapplied overhead last year was?