Find the fixed cost per month and variable rate

Assignment Help Managerial Accounting
Reference no: EM133111647

Question - Tiger Mickelson is the HR director of a growing golf drivers company called "Weapons of Grass Destruction" (WGD) Corp. Tiger is reviewing the bill for Information Technology (IT) work this year and wants you to look at these numbers below and give your management accounting advice:

IT Work Job Cost ($)

JAN 34,907

FEB 31,260

MARCH 37,950

APRIL 38,250

MAY 44,895

JUNE 44,055

Number of IT jobs completed

JAN 5,700

FEB 4,900

MARCH 6,100

APRIL 6,500

MAY 7,930

JUNE 7,514

Required - SOLVE and ANALYZE:

1) Tiger asks you to show them the cost formula and also use the high-low method to find the fixed cost per month and variable rate.

2) WGD management expects they will have 75.600 jobs next year and they are considering outsourcing this IT work to a firm called "Fairway to Heaven" Inc. This firm's bid is $4.60 per IT Job. The WGD HR director asked whether they should outsource based on your calculations. Provide your management accounting expertise to help his business do the calculation and give advice on what they should do next to reduce their costs.

Reference no: EM133111647

Questions Cloud

Design a program that creates a car object : Design a class as well as a program that creates an object and calls methods - design a program that creates a Car object and then calls the accelerate method
What is their ytm : Raines Umbrella Corp. issued 10-year bonds two years ago with a coupon rate of 10 percent. If these bonds currently sell at a price of 115, what is their YTM
Determine share price : Altra Corp will last for 5 years. Its unlevered free cash flow will be $45 million in each of these 5 years. The unlevered cost of capital for the firm is 10%.
How much inventory was requisitioned for use on jobs : The company purchased $305000 of materials; however, it paid for only $242500. How much inventory was requisitioned for use on jobs during 2019
Find the fixed cost per month and variable rate : Tiger asks you to show them the cost formula and also use the high-low method to find the fixed cost per month and variable rate
Compute the federal taxes owing or owe for 2021 : Compute the federal taxes owing or owe for 2021 - Mrs. Wu comes to you for advice in February 2021. Last year 2020, was a year of considerable change
Determine the cost allocation : Determine the cost allocation if $5.67 million of the communications network costs are fixed and allocated on the basis of time on network
Should tipton close its wallpaper operation : The firm will increase advertising expenditures by $25,000 to promote the expanded carpet line. Should Tipton close its wallpaper operation
What is the future value of this prize : The florida lottery agrees to pay the winner 280,000 at the end of each year for the next 20 years. What is the future value of this prize

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!

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