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Unformatted text preview: ACCT3334 Fall 2010 I n-class quiz on Cost Behaviour Name _______________________________ 1. The following selected data were taken from the accounting records of Hyacinth Mfg. The company uses machine hours as its cost driver for overhead costs. Month Machine Hours Manufacturin g Overhead January 30,650 818,800 February 24,100 837,650 March 28,500 733,550 April 28,150 888,750 May 32,400 778,050 June 26,500 721,650 July 27,500 855,050 August 31,950 878,100 September 31,000 854,900 October 31,050 983,250 November 41,550 952,650 December 32,900 817,050 Using the high-low method which of the following is the correct expression that may be used to predict manufacturing overhead costs? a. y = 545,906 + 15.3488*machine hours b. y = 621,957 + 14.9914*machine hours c. y = 678,823 + 6.5903*machine hours d. y = 801,954 + 57.4945*machine hours e. y = 793,825 + 6.5903*machine hours 2. The production manager has provided you with the following information for the months of September and October: September: Hours worked = 3,000, Average cost per hour = $8.50 October: Hours worked = 4,000, Average cost per hour = $7.90 Based on this information, what are the estimated fixed and variable cost per hour (respectively) for this production department?(respectively) for this production department?...
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