open the pdf

Question 1
    Week    Hours of Operation    Utilities Cost
    1    55    6480
    2    60    6600
    3    64    7460
    4    70    7600    High Point
    5    45    5400
    6    40    5200    Low Point
        High Point    Low Point    Change    Variable Cost per Unit
    Cost    7600    5200    2400    80
    Hours    70    40    30
    Fixed Cost    2000
    (b). Cost for 49 Hours:
    Variable Cost     3920
    Fixed Cost    2000
    Total Cost    5920
    (c)
    Week    Hours of Operation    Variable Cost    Fixed Cost    Total Cost
    1    55    4400    2000    6400
    2    60    4800    2000    6800
    3    64    5120    2000    7120
    4    70    5600    2000    7600
    5    45    3600    2000    5600
    6    40    3200    2000    5200
    Decrease in Level of Activity will not impact variable cost per unit but will decrease the total variable cost in the same propotion as the production is decreased.
Question 2
    (a).
    Budgeted Ovehead     920000
    Machine Activity    20000
    Machine Hour rate    46
    The predetmined Overhead rate is $46 per hour.
    (b).
    Total Machine Hours used during the quarter    3600
    Machine Hour rate    46
    Manufacturing Overhead Applied    165600
    (c) & (d)
    Particulars    K1    K2    K3
    Direct Material     0    50500    45000
    Direct Labour    30000    23000    65000
    Overhead    46000    27600    92000
    Total Cost     76000    101100    202000
    (e)
    The overheads are Underapplied because the Machine Hour rate is wrongly calculated. The Initial estimate is low.
Question 3
    Particulars    Chevalier    Dame
    Estimated Production Volume    6000    4000
    Direct Material Cost    30    50
    Direct Labour Hours    3    4
    Labour cost per hour    12    12
    Total...