28. The following data pertains to activity and utility costs for two recent yea

Question

28. The following data pertains to activity and utility costs for two recent years: Year 1 Year 2 10,000 6,000 Activity level in units.. Utilities cost observed.... $12,000 $9,000 Using the high-low method, the cost formula for utilities is: A. $1.50 per unit B. $1.20 per unit C. $3,000 plus $3.00 per unit D. $4,500 plus $0.75 per unit 29, Capalbo Corporation bases its predetermined overbead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company esti the labor-hours for the upcoming year at 52,000 labor-hours. The estimated manufacturing overhead was $2.78 per labor-bour and the estimated total fixed manufacturing mated variable overhead labor-hours. The predetermined overhead rate for the recently completed year was closest to: was $1,192,360. The actual labor-hours for the year turned out to be 52,60 B. $25.45 f C. $25.71 D.$22.93 30. Scheney Company uses the weighted-average method in its process costing system. The company's work in process inventory on March 31 consisted of 20,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the cost per equivalent unit for March was $2.50 for materials and $4.75 for labor and overhead, the total cost in the March 31 work in A. $145,000 B. $116,500 C. $101,500 D. $78,500

Explanation / Answer

Q28. Amswer is D. $ 4500+ 0.75 per unit Variable cost per unit: Change in cost / change in units (12000-9000) / (10,000-6,000) = 0.75 per unit Fixed cost: Total cost of budget 12000 Less: variablecocst 7500 Fixed cost: 4500 Cost function C(X) =$ 0.75 X +4500 Q29. Answer is C. $ 25.71 Exxplanation Fixed OH rate: Estimated Fixed OH / Direct labour hours 1192360 /52000 = $ 22.93 per unit 22.93 Total OH rate:' variable 2.78 fixed 22.93 Total OH rate:' 25.71 Q30. Answwer is B. $ 116,500 Explanation: Cost of ending Wip: Material (20000 units @2.50) 50000 Conversion (14000 eq. units @4.75) 66500 Total Cost of ending Wip 116,500

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