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1. The total expected overhead cost at Hunger Company for 300 machine hours is estimated to be Php 5,000 based on the provided cost formulas. 2. Using the high-low method on order data from January to April 2016, Mockingbird Company's estimated variable cost per order is Php 2.48. 3. Based on the cost estimates provided at different activity levels, Dawn Company's estimated cost for handling 75,000 kilos is Php 153,000.

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Robelyn Lacorte
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1K views1 page

Ac4 Cba

1. The total expected overhead cost at Hunger Company for 300 machine hours is estimated to be Php 5,000 based on the provided cost formulas. 2. Using the high-low method on order data from January to April 2016, Mockingbird Company's estimated variable cost per order is Php 2.48. 3. Based on the cost estimates provided at different activity levels, Dawn Company's estimated cost for handling 75,000 kilos is Php 153,000.

Uploaded by

Robelyn Lacorte
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

Hunger Company has estimated the following cost formulas for overhead:
Cost Formulas
Lubricants Php 1,500 plus Php 0.50 per machine-hour
Utilities Php 2,000 plus Php 0.60 per mchine-hour
Depreciation Php 1,000
Maintenance Php 200 plus Php 0.10 per machine-hour
Machine setup Php 0.30 per machine-hour
Based on the cost formulas,what is the total expected overhead cost at 300 mchine hours?
a. Php 4,700 c. Php 5,000
b. Php 4,950 d. Php 5,150
2. Mockingbird Compony applies the high-low method of cost estimation to customer order data for the first 4 months
of 2016:
Month Orders Cost (Php)
January 1,200 3,120
February 1,300 3,185
March 1,800 4,320
April 1,700 3,895
What is the estimated variable cost component per order?
a. Php 2.00 c. Php 2.48
b. Php 2.42 d. Php 2.50
3.Dawn Company estimated its materials handling cost at two activity levels as follows:
Kilos Handled Cost
80,000 160,000
60,000 132,000
What is Dawn's estimated cost for handling 75,000 kilos?
a. Php 150,000 c. Php 157,500
b. Php 153,000 d. Php 165,000
4. In March,Starbox had electrical cost of Php 225.00 when the total volume was 4,500 cups of coffee
served. In April,electrical cost were Php 227.50 for 4,750 cups of coffee. Using the high-low method,
what is the estimated fixed cost of electricity per year?
a. Php 180 c. Php 225
b. Php 200 d. Php 2,160
5. Night Inc.uses the high-low method to derive the cost formula for electrical power cost.According
to the cost formula,the variable cost per unit of activity is Php 3 per machine hour.Total electrical
power cost at the high level of activity was Php 7,600 and the low level of activity was Php 7,300.
If the high level of activity was 1,200 machine-hour,then what was the low level of the activity.
a. 800 machine hour c. 1,000 machine hour
b. 900 machine hour d. 1,100 machine hour
6. Black Co. has an averrage unit cost of Php 45 at 10.000 units and Php 25 at 30.000 units.What is the
unit variable cost?
a. Php 10.00 c. Php 20.00
b. Php 15.00 d. An amount that cannot be determined
without information
7.Total production cost of prior periods for a company are listed below.Assume that the same
cost behavior patterns can be extended linearly over the range of 3,000 to 35,000 unit that the
cost driver for each product is the number of units produced.
Production per month(units) 3,000 9,000 16,000 35,00
Product X Php 23,700 Php 52,680 Php 86,490 Php 178,260
Product Y 47,280 141,840 252,160 551,600
What is the average cost per unit at a production level of 8,000 units for production X?
a. Php 7.90 c. Php 5.85
b. Php 5.98 d. Php 4.83

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