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The following data is available regarding costs and units:Observation Machine-hours Total Operating CostsJanuary 4,000 $45,900February 5,000 52,500March 3,400 44,025April 4,400 48,000May 4,500 49,200Required:a. Use the high-low method to determine variable cost per unit and the fixed costs.b. If June's estimated machine-hours total 4,200, what are the total estimated costs of the Machining Department? What are the costs per hour?Variable Cost Per Unit ___________________________________Fixed Costs ____________________________________Costs @ 4,200 units ____________________________________Cost Per Hour @ 4,200 ____________________________________
TYPES OF VARIANCES Variances are computed for the entire three basic elements of cost - direct labour, direct material, and overhead variance 1. Direct labour variance 2.
Types of Overhead Absorption Rate NB: Overheads incurred are generally absorbed on the basis of budgeted or estimated figures. The given basis may be applied leading to the
Limitations of abc analysis
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