Recent Posts • Latest Topics • Unanswered Questions

Birch Canvas and Tarp manufactures canvas products in a highly automated assembly plant in Edmonton, ...

StormLrd

wrote...

Go to Answer

Posts: 1017

Rep:

6 years ago

Birch Canvas and Tarp manufactures canvas products in a highly automated assembly plant in Edmonton, ...

Birch Canvas and Tarp manufactures canvas products in a highly automated assembly plant in Edmonton, Alberta. Their automated system is in its first year of operation, and management is still unsure of the best way to estimate the overhead costs of operations for budgetary purposes. For the first six months of operations the following data were collected:

Observation   Machine-hours   Kilowatt-hours   Total Overhead Costs
January   1,950   2,260,000   $116,000
February   1,825   2,170,000   114,000
March   1,900   2,250,000   115,000
April   1,650   2,145,000   114,000
May   1,625   2,100,000   105,000
June   1,550   2,060,000   100,000

Required:
a.   Compute a cost estimating equation for each independent variable (machine-hours and kilowatt-hours) using the high-low method.
b.   For July the company ran the machines for 1,600 hours and used 2,075,000 kilowatt hours of power. The overhead costs totalled $95,000. Which driver was the best predictor for July?

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

Read 124 times

1 Reply

Report

Replies

Answer verified by a subject expert

Allopa

wrote...

Related Topics

StormLrd Author

wrote...

6 years ago

Thanks

noodlelicker

wrote...

Yesterday

Just got PERFECT on my quiz

smdavis

wrote...

2 hours ago

I appreciate what you did here, answered it right Smiling Face with Open Mouth

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

1248 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

7152

668

Your Opinion

Previous poll results: Do you believe in global warming?

It's sore throat season, why does my mucus have red spots?

Strange Ingredients Lurking in Doritos Chips

The Toxic Skin and Fungi Defense

Courses by Biology Forums

Bonobos, Chimpanzees, and the 98% DNA Link

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.