Chapter+5+Solutions - P5-17 Nova Company1. Maintenance Cost...

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Unformatted text preview: P5-17 Nova Company1. Maintenance Cost in July90,000 MHTotal 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 FormulaHigh LevelLow LevelChangeMaintenance cost$153,000 $105,000 $48,000 Machine hours90,000 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 + $1.60MH3. Total Overhead Cost FormulaUtilities$0.80 Supervisory salaries$21,000 Maintenance$1.60 $9,000 Total$2.40 $30,000 Cost formula (Overhead):$30,000 + $2.40MH4. Overhead Cost at 75,000 Machine Hours75,000 MHVariable 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 MonthP5A-5 Milden Company1. Cost Formula for Shipping ExpenseQuarterUnits Sold Year 1 Qtr 110,000 $119,000...
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This note was uploaded on 03/08/2012 for the course ECON 155 taught by Professor Klein during the Spring '12 term at University of California, Berkeley.

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Chapter+5+Solutions - P5-17 Nova Company1. Maintenance Cost...

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