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Author Question: Salter Manufacturing Company produces inventory in a highly automated assembly plant in Fall River, ... (Read 37 times)

schs14

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on: Mar 6, 2021
Salter Manufacturing Company produces inventory in a highly automated assembly plant in Fall River, Massachusetts. The 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: 

Machine-hoursKilowatt-hoursTotal Overhead Costs
January4,5605,424,000$405,600
February4,3805,208,000404,160
March4,6805,400,000407,040
April3,9605,148,000404,160
May3,9005,040,000391,200
June3,7204,944,000384,000

Required: 
a.  Use the high-low method to determine the estimating cost function with machine-hours as the cost driver.
b.  Use the high-low method to determine the estimating cost function with kilowatt-hours as the cost driver.
c.  For July, the company ran the machines for 4,000 hours and used 4,550,000 kilowatt-hours of power. The overhead costs totaled $365,000. Which cost driver was the best predictor for July?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by schs14 on Mar 6, 2021

welcom1000

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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schs14

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Reply 2 on: Mar 6, 2021
Excellent

milbourne11

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Reply 3 on: Yesterday
:D TYSM

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