Problem 9Johnson Corporation is preparing a flexible budget and desires to separate itselectricity expense, which is semi-variable and fluctuates with total machine hours,into its fixed and variable components. Information for the first three months of2009 is as follows:Machine HoursElectricity ExpenseJanuaryFebruaryMarch3,5002,0004,00031,50020,00035,600Requirements:1. Compute the variable rate per machine hour.2. Compute the fixed portion of Johnson's electricity expense.3. Compute the total manufacturing costs if Johnson's actual machinehours used is 4,500.

High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…

Problem 9 Johnson Corporation is preparing a flexible budget and desires to separate its electricity expense, which is semi-variable and fluctuates with total machine hours, into its fixed and variable components. Information for the first three months of 2009 is as follows: Electricity Expense P 31,500 20,000 35,600 Machine Hours January February March 3,500 2,000 4,000 Requirements: 1. Compute the variable rate per machine hour. 2. Compute the fixed portion of Johnson's electricity expense. 3. Compute the total manufacturing costs if Johnson's actual machine hours used is 4,500.

Problem 9 Johnson Corporation is preparing a flexible budget and desires to separate its electricity expense, which is semi-variable and fluctuates with total machine hours, into its fixed and variable components. Information for the first three months of 2009 is as follows: Electricity Expense P 31,500 20,000 35,600 Machine Hours January February March 3,500 2,000 4,000 Requirements: 1. Compute the variable rate per machine hour. 2. Compute the fixed portion of Johnson's electricity expense. 3. Compute the total manufacturing costs if Johnson's actual machine hours used is 4,500.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...

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