QUESTION 18 4 poin Petersheim Snow Removals cost formula for
QUESTION 18 4 poin Petersheim Snow Removal\'s cost formula for its vehicle operating cost is $1,750 per month plus $484 per snow-day For the month of November, the company planned for activity of 15,snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $8,360. The vehicle operating cost in the flexible budget for November would be closest to: $8526 o $8,409 O$9,010 $8,360 QUESTION 19 4 poin Northwest\'s production data for one of its products were taken from the most recent quarterly production budget: July August September 1,000 1.100 Planned production in units 980 If it takes two direct labor hours to produce each unit and Northwest\'s cost per labor hour is $15, direct labor cost for August would be budgeted at: O $16,500 $31,200 O $33,000 O $34,800. QUESTION 20 4 point
Solution
A.$8,526.
14 day vehicle operating for the month in the flexible budget will be = $1,750 + (14 days*484)
=>$8,526.
question 19:
C.$33,000.
direct labour cost for august = planned production in august * direct labour hours per unit * cost per labour hour
=>1,100 units * 2 hours per unit * $15
=>$33,000.
question 20:
A.$110,710.00
only variable costs will change due to change in machine hours.
=> (34,320 + 50,700) / 7800 * 7900 =>86,110......(this is the variable overhead cost at 7900 machine hours)
now,
total overhead cost will be
=>$86,110 variable costs + 10,200 + 5600+8800 (fixed costs)
=>$110,710.
