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ACCT 434 Week 3 Homework

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ACCT 434 Week 3 Homework

1.Question :Related to Problem #1, use the high-low method to determine the estimating cost function with machine-hours as the cost driver.

 

Question 2.Question :Related to Problem #1, use the high-low method to determine the estimating cost function with kilowatt-hours as the cost driver.

 

Question 3.Question :Related to Problem #1, for July, the company ran the machines for 3,000 hours and used 4,000,000 kilowatt-hours of power.  The overhead costs totaled $114,000.  Which cost driver was the best predictor for July?

 

Question 4.Question :Related to Problem #2, what amount of the MNO production costs is avoidable?

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Question 5.Question :Related to Problem #2, should the company outsource MNO?  Why or why not?

 

Question 6.Question :Related to Problem #2, what other items should the company consider before outsourcing any of the parts it manufactures?

 

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