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Michael Scott works as a cost analyst for mid-size paper company. The collected the following information concerning the operations of the Machine Department:
Observation Machine Hours Total operating cost
January 4000 $45,000February 4600 49,500March 3800 45,750April 4400 48,000May 4500 49,800
Required:
Problem a. use the high-low method to determine the estimating cost function with machine hours as the cost drivers.
Problem b. if the month of June Estimated machine hours total 4200, what are the total estimated costs of the machining department?
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Aromatic Company for its line of perfume products for the month ended March 3. Prepare a production cost report for the month ended March 31, using the average cost method.
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Manufacturing overhead applied to Work in Process for month was $69,450 and manufacturing overhead transferred from Finished Goods to Cost of Goods Sold through the month was $69,450.
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Prepare an income statement and a retained earnings statement for the month of June and a balance sheet at June 30, 2010 and briefly discuss whether the companys first month of operations was a success.
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