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##### Machine hours and electricity costs for IJMAC Industries for 2013 were as follows

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Question;Part 1 High-Low;Method (12 Points). Page 2;Machine hours and;electricity costs for IJMAC Industries for 2013 were as follows;Required: Transfer the information in the table above to an;Excel spreadsheet and prepare the solutions to the following questions. Your;solution should show the appropriate formulas and the detailed calculations. In;using Excel, you should use appropriate formulas and functions to show your;understanding of basic Excel functions. Clearly identify your answer to each;question.;Month Machine;Hours Electricity Costs January;2,000 $ 12,000 February;2,320 10,500 March;1,560 6,650 April;2,480 11,500 May;3,040 14,125 June;2,640 11,000 July;3,280 12,375 August;2,800 11,375 September;1,600 6,700 October;2,960 13,000 November;3,760 15,450 December;3,700 15,400;a.;A. Using the high-low method, develop an estimate of;variable electricity costs per machine hour. B. Using the high-low method, develop an;estimate of fixed electricity costs per month. C. Using the high-low method, develop;a cost function for monthly electricity costs. D. Estimate electricity costs for a month;in which 3,000 machine hours are worked. Month Machine Hours;Electricity Costs January 2,000;$ 12,000 February;2,320 10,500 March;1,560 6,650 April;2,480 11,500 May;3,040 14,125 June;2,640 11,000 July;3,280 12,375 August;2,800 11,375 September;1,600 6,700 October;2,960 13,000 November;3,760 15,450 December;3,700 15,400 a. A.;Using the high-low method, develop an estimate of variable electricity costs;per machine hour. B. Using the;high-low method, develop an estimate of fixed electricity costs per month. C. Using the high-low method, develop;a cost function for monthly electricity costs.;Page;3 Part 2. Job order costing Reed Incorporated uses a job-order;costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the;company estimated manufacturing overhead for the year would be $240,000 and;machine hours would be 8,000. The;following information pertains to December of the current year;Actual manufacturing overhead cost incurred in December was;$61,000. Jobs 10 and 12 were completed;during December. Job 10 was sold to customer (see c below).;Required: Transfer;the information in the table above to an Excel spreadsheet and prepare the;solutions to the following questions. Your solution should show the appropriate;formulas and the detailed calculations. In using Excel, you should use;appropriate formulas and functions to show your understanding of basic Excel;functions. Clearly identify your answer to each question.;a. Compute the predetermined overhead application rate.;b. Determine the;total cost associated with each job.;c. Jobs 10 and 12 were completed during the month. If job 10;was delivered to customers that paid $50,000 cash, what is the gross profit for;job 10?;d. What is the cost assigned to ending work in process?;e. What is the cost;assigned to ending finished goods? f.;How much was overhead over/under applied?

Paper#44014 | Written in 18-Jul-2015

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