Tessmer manufacturing company produces inventory in a

Reference no: EM13392338

Tessmer Manufacturing Company produces inventory in a highly automated assembly plant in Olathe, KS. The automated system is in its first year of operation and management is still unsure of the best way to estimate the overhead costs of operations for budgetary purposes. For the first six months of operation, the following data was collected:

Machine-hours Kilowatt-hours Total Overhead Costs

January 3,800 4,520,000 $138,000

February 3,650 4,340,000 136,800

March 3,900 4,500,000 139,200

April 3,300 4,290,000 136,800

May 3,250 4,200,000 126,000

June 3,100 4,120,000 120,000

Question 1: Use the high-low method to determine the estimating cost function with machine-hours as the cost driver.

Question 2: Use the high-low method to determine the estimating cost function with kilowatt-hours as the cost driver.

Question 3: For July, the company ran the machines for 3,000 hours and used 4,000,000 kilowatt-hours of power. The overhead costs totaled $114,000. Which cost driver was the best predictor for July?

Reference no: EM13392338

Questions Cloud

Level of diversification the firm should have a : assignment 3 course project task 1in the course project you will analyze the corporate strategy of a multi-business

Which control should periodically reassess its approach to : 1 which of the following is most closely associated with a proactive marketing orientation? a. it involves delivering

If you find out that up-coding has taken place what actions : you have just been hired as the special assistant to the regulatory compliance officer rco at union hospital a large

Use a three-panel diagram to illustrate effect of the shift : the chapter notes that the rise in the u.s. trade deficit during the 1980s was due largely to the rise in the u.s.

Tessmer manufacturing company produces inventory in a : tessmer manufacturing company produces inventory in a highly automated assembly plant in olathe ks.nbsp the automated

The cause-and-effect diagram is significant in determining : the cause-and-effect diagram is important in determining causes and effects of a problem. the cause-and-effect diagram

Do you think global currency would redistribute wealth : do you believe global currency would redistribute wealth among all countries? if global currency was backed by a fixed

An effective manager accepts the political nature of : in 200 to 300 words explain expand on and analyze the followingan effective manager accepts the political nature of

Write down a 350- to 500-word summary describing the : write a 350- to 500-word summary explaining the differences between revenue expenditures and capital expenditures

User Account

All Pages