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Unformatted text preview: 5-22 1 TC=F+VX Last Year Direct materials Direct Labor Var. Overhead Fixed Man. Overhead 630000 525000 462000 720000 Var. Cost per unit X VX TC Cost Estimate for level of 220,000 units is $2,556,000 2 Last Year Direct materials 630000 Direct Labor 525000 Var. Overhead 462000 Fixed Man. Overhead 720000 $11.13 Cost Per Unit Cost Per Unit 5-24 1 Num. Visitior Per Year Maintenance Costs 1825000 1950000 2007000 2150000 2375000 2500000 Var.Cost per unit (V)=(Cost at highest level of activity- Cost at lowet level of activity)/(highest level of activity-lowet Var.Cost per visitor (V)= $1.00 Fixed Cost=Total Cost at highest activity level-(Var. Cost*Highest activity level) Fixed Cost= $125,000.00 2 TC=F+VX TC= $2,725,000.00 3 No. Thiss is not ethical to treat this observation as outlier. This is higher level of activity and the highest maintenan and this is a chanse to save maintenance department, but this is not the reason to make it outlier. This Year Direct materials Direct Labor Var. Overhead Fixed Man. Overhead 756000 546000 462000 792000 8 220000 1764000 2556000 This Year Direct materials 756000 Direct Labor 546000 Var. Overhead 462000 Fixed Man. Overhead 792000 $11.62 ighest level of activity-lowet level of activity) ty and the highest maintenance cost,without it fixed coss will be lower ke it outlier. ...
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- Spring '08
- Cost Accounting, Direct Labor Var, Thiss