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Chapter+5+Solutions

Chapter+5+Solutions - P5-17 Nova Company 1 Maintenance Cost...

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P5-17 Nova Company 1. Maintenance Cost in July 90,000 MH Total overhead cost $246,000 Utilities (variable) ($0.80 x 90,000) $72,000 ($48,000/60,000 = $0.80 per MH) Supervisory salaries (fixed) $21,000 Maintenance (mixed) $153,000 ($246,000 - $72,000 - $21,000) 2. Maintenace Cost Formula High Level Low Level Change Maintenance cost $153,000 $105,000 $48,000 Machine hours 90,000 60,000 30,000 Variable cost per M.H. $1.60 ($48,000/30,000) Total maintenance cost (high) $153,000 Variable maintenance (high) $144,000 Fixed maintenance cost $9,000 Cost formula (Maintenance): $9,000 + $1.60MH 3. Total Overhead Cost Formula Utilities $0.80 Supervisory salaries $21,000 Maintenance $1.60 $9,000 Total $2.40 $30,000 Cost formula (Overhead): $30,000 + $2.40MH 4. Overhead Cost at 75,000 Machine Hours 75,000 MH Variable cost ($2.40 x 75,000) $180,000 Fixed cost $30,000 Total overhead cost $210,000 Variable Cost per M.H. Fixed Cost per Month
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P5A-5 Milden Company 1. Cost Formula for Shipping Expense Quarter Units Sold Year 1 Qtr 1 10,000 $119,000 Year 1 Qtr 2 16,000 $175,000 Year 1 Qtr 3 18,000 $190,000 Year 1 Qtr 4
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