Question

Runaround Corporation sells running shoes and during January they ran production machines for 22,000 hours total...

Runaround Corporation sells running shoes and during January they ran production machines for 22,000 hours total and incurred $ 10,000 in maintenance costs. During July they ran production machines for 14,000 hours total and incurred $ 7,400 in maintenance costs.   Based on this​ data, what is the variable maintenance cost per machine​ hour?

Homework Answers

Answer #1

variable maintenance cost per machine​ hour = Change in cost /change in machine hours

                    = [10000 - 7400] /[22000-14000]

                    = 2600/ 8000

                     = $ .325 per machine hour

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Runaround Corporation sells running shoes and during January they ran production machines for 24,000 hours total...
Runaround Corporation sells running shoes and during January they ran production machines for 24,000 hours total and incurred $14,000 in maintenance costs. During July they ran production machines for 11,000 hours total and incurred $8,600 in maintenance costs.   Based on this​ data, what is the cost formula for maintenance​ costs? (Round intermediary calculations to the nearest​ cent.) A. y​ = $1.85 X​ + $37,300 B. y​ =$0.42 X​ + $3,920 C.y​ = $0.61 X​ + $14,000 D.Cannot determine from the...
Sheldon Shoes Company makes and sells a variety of leather shoes for children. For its current...
Sheldon Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and sizes, the average selling price and costs per pair of shoes are as follows: (Click the icon to view the data.) Shoes are manufactured in batch sizes of 100 pairs. Each batch requires 4 machine hours to manufacture. The plant has a total capacity of 5000, machine hours per month, but current monthly production consumes only about 90%of the...
Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total...
Crosshill Company’s total overhead costs at various levels of activity are presented below: Month Machine-Hours Total Overhead Cost      April 49,000    $173,870        May 39,000    $151,570        June 59,000    $196,170        July 69,000    $218,470   Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000-machine-hour level of activity in May is as follows:   Utilities (variable) $ 42,900     Supervisory salaries (fixed) 46,000   Maintenance (mixed) 62,670   Total overhead cost $ 151,570 The...
Wildhorse's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Wildhorse received...
Wildhorse's Wind Toys manufactures decorative kites, banners, and windsocks. During the month of January, Wildhorse received orders for 3,000 Valentine’s Day banners and 1,400 Easter kites. Because several sewing machines are in the shop for repairs, Wildhorse has only 1,000 sewing machine hours available for production of these orders. Each Valentine’s Day banner sells for $12. The banners take one hour to sew and have a total variable cost of $9 per banner. The Easter kites sell for $15. They...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours Total Overhead Cost April 52,000 $ 198,260 May 42,000 $ 172,460 June 62,000 $ 224,060 July 72,000 $ 249,860 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 42,000 machine-hour level of activity is: Utilities (variable) $ 58,800 Supervisory salaries (fixed) 49,000 Maintenance (mixed) 64,660 Total overhead cost $ 172,460 Nova Company’s...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours Total Overhead Cost April 48,000 $ 217,820 May 38,000 $ 190,420 June 58,000 $ 245,220 July 68,000 $ 272,620 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 38,000 machine-hour level of activity is: Utilities (variable) $ 57,000 Supervisory salaries (fixed) 70,000 Maintenance (mixed) 63,420 Total overhead cost $ 190,420 Nova Company’s...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours Total Overhead Cost April 48,000 $ 199,940 May 38,000 $ 172,640 June 58,000 $ 227,240 July 68,000 $ 254,540 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 38,000 machine-hour level of activity is: Utilities (variable) $ 57,000 Supervisory salaries (fixed) 54,000 Maintenance (mixed) 61,640 Total overhead cost $ 172,640 Nova Company’s...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells...
Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Amount per Unit Direct materials $ 7.00 Direct labor $ 4.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.50 Sales commissions $ 1.00 Variable administrative expense $ 0.50 Required: 5. If 18,000 units are produced, what is the average fixed manufacturing cost...
WMEJ is an independent television station run by a major state university. The station’s broadcast hours...
WMEJ is an independent television station run by a major state university. The station’s broadcast hours vary during the year depending on whether the university is in session. The station’s production-crew and supervisory costs are as follows for July and September. Cost Item Cost Behavior Cost Amount Broadcast Hours during Month Production crew Variable July $ 4,140 360 September 7,360 640 Supervisory employees Fixed July 5,000 360 September 5,000 640 Required: 1. Compute the cost per broadcast hour during July...
Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system...
Mahon Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Casting Customizing Machine-hours 14,000 12,000 Direct labor-hours 5,000 6,000 Total fixed manufacturing overhead cost $ 112,000 $ 48,000...