Purchase Solution

ABC Company has an automated production process... Compute the variable-overhead rate per machine hour in a flexible-budget formula and the total budgeted manufacturing cost

Not what you're looking for?

Ask Custom Question

Please help with parts e, and k in the attached problem.

---
The ABC Company has an automated production process, and production activity is quantified in terms of machine hours. It uses a standard-costing system. The annual static budget for
20x6 called for 6,000 units to be produced, requiring 30,000 machine hours. The standard-overhead rate for the year was computed using this planned level of production. The 20x6 manufacturing cost report follows.

The company produced a total of 6,200 units during 20x6, requiring 32,000 machine hours. The preceding manufacturing cost report compares the company's actual cost for the year with the static budget and the flexible budget for two different activity levels.
Required
Compute the following amounts. For variances, indicate favorable or unfavorable where appropriate. Answers should be rounded to two decimal places when necessary.

e. The variable-overhead rate per machine hour in a flexible-budget formula. (Hint: Use the high-low method to estimate cost behavior.)

k. The total budgeted manufacturing cost (in thousands of dollars) for an output of 6,050 units. (Hint: Use the flexible-budget formula.)
---

Attachments
Purchase this Solution

Solution Summary

You will find the answer to this puzzling question inside...

Purchase this Solution


Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.