help with part D please Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month.Actual time spent on the tune-upHourly wage ratePayroll taxesSetup and downtimeCleanup and rest periodsEmployee benefits(a)(b)1.0 hour$1715% of wage rate10% of actual labor time20% of actual labor time25% of wage rateYour answer has been saved. See score details after the due date.Determine the standard direct labor hours per tune-up. (Round answer to 2 decimal places, e.g. 15.10.)Standard direct labor hourly rateStandard direct labor hours per tune-upYour answer has been saved. See score details after the due date.1.3Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 15.25.)$23.80hoursAttempts: 1 of 1 usedAttempts: 1 of 1 used (b)Determine the standard direct labor hourly rate. (Round answer to 2 decimal places, e.g. 15.25.)(c)Your answer has been saved. See score details after the due date.Standard direct labor hourly rate $(d)Your answer has been saved. See score details after the due date.Determine the standard direct labor cost per tune-up. (Round answer to 2 decimal places, e.g. 15.25.)Standard direct labor cost per oil change23.80Direct Labor Quantity Variance $$Save for LaterIf a tune-up took 1.6 hours at the standard hourly rate, what was the direct labor quantity variance? Identify whether the variance is favorable or unfavorable. (Round answer to 2 decimal places, e.g. 15.25.)30.94Not ApplicableUnfavorableFavorableAttempts: 1 of 1 usedAttempts: 1 of 1 usedAttempts: 0 of 1 usedSubmit Answer

The variance arises when there is the difference between actual costs and budgeted costs. The…

Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the tune-up Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Employee benefits 1.0 hour $17 15% of wage rate 10% of actual labor time 20% of actual labor time 25% of wage rate

Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up. The following data have been collected from time and motion studies conducted over the past month. Actual time spent on the tune-up Hourly wage rate Payroll taxes Setup and downtime Cleanup and rest periods Employee benefits 1.0 hour $17 15% of wage rate 10% of actual labor time 20% of actual labor time 25% of wage rate

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
The controller of the Blade Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance: (Click to view the information.) Required 1. Estimate the cost function for maintenance. 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. Requirement 1. Estimate the cost function for maintenance. (Round your answers to the nearest cent as needed.) Maintenance costs = Maintenance costs = +( +( X X Requirement 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. the relevant range, not at cost levels the relevant range. If there are no months with zero The cost function in requirement 1 is an estimate of how costs behave machine-hours represented in the maintenance account, data in that account function provides the best available starting point for a straight line that approximates how a cost behaves be used to…
Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation $ 21,200 $ 15.00 $ 7.10 $ 2,770 $ 0.45 Truck operating expenses Rent $ 5,720 $ 1.60 $ 4,640 $ 3,880 $ 0.50 Administrative expenses For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May but actually worked 2,700 repair-hours. The company expects its sales to be $54.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance). Input all amounts as positive values. Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expenses Net…
Current Attempt in Progress The controller of Oriole Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June Total Maintenance Costs $2,860 3,160 3,760 4,660 3,360 5,260 Total Machine Hours 320 370 520 670 520 720
Using the least-squares method of analyzing costs, answer the following questions and show computations to support your answers. a. What is the estimated variable portion of maintenance costs per labor hour? B.What is the estimated fixed maintenance cost each month? C.Formulate the regression equation D.If it is estimated that 600 labor hours will be used in July, what is the expected total power cost for July?
Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost Multiple Choice Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: (Round your intermediate calculations to 2 decimal places.) O O Prior Year 17,100 20,100 $ 29,400 $ 34,200 $29,400 per year; $1.701 per machine hour Current Year $2,040 per year; $1.701 per machine hour $2,040 per year; $1.600 per machine hour $29,400 per year; $1.600 per machine hour
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round to the nearest cent. Machine Hours March April May June Oa. $0.15 Ob. $1.02 Oc. $0.98 Od. $1.75 Cost $3,007 2,696 2,803 3,778 14,577 10,259 11,668 17,667
Q1:- The following data relate to maintenance costs of Kim company for the last six months of 2010:- Months Activity level- hours (X) Maintenance costs $ (Y) 1 4 24 2 3 22 3 8. 32 4 6. 28 5 7 30 6. 20 Required: 1- Determine variable and fixed costs using a high- low method of activity and writing the cost equation.
Jake’s Roof Repair has provided the following data concerning its costs:Fixed Cost Cost perper Month Repair-HourWages and salaries ..................... $23,200 $16.30Parts and supplies ........................ $8.60Equipment depreciation ................ $1,600 $0.40Truck operating expenses ........... $6,400 $1.70Rent .............................................. $3,480Administrative expenses ............... $4,500 $0.80For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected towork 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales tobe $44.50 per repair-hour.Required:Prepare a report showing the company’s activity variances for May
The following are the Maintenance Costs incurred in a Machine Shop for six months with corresponding machine hours. Analyse the Semi-Variable Maintenance Costs into Fixed & Variable elements by High and Low Points Method. Feb Month Jan Mar Apr 34 May 28 June Total Maintenance Costs Rs.000s Machine Hours 30 32 27 29 180 2,000 2,200 1,700 2,400 1,800 1,900 12,000
Aaron, Inc. estimates direct labor costs and manufacturing overhead costs for the coming year to be $760,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 5,000 hours, respectively. What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.) OA. $1.52 per labor hour OB. $100.00 per machine hour OC. $152.00 per machine hour O D. $31.25 per labor hour
The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.