# Michael owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of \$2,400 occurred in August when the machines worked 1,000 machine hours. The lowest utility bill of \$2,200 occurred in December when the machines worked 500 machine hours.Requirement:1. Calculate the variable rate per machine hour and the total fixed utility cost. 2. Show the equation for determining total utility cost for the machine shop. 3. If Matt anticipates using 1, 200 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2.

Instructions are below.

Explanation:

Giving the following information:

Highest cost= \$2,400 when the machines worked 1,000 machine hours.

Lowest cost= \$2,200 when the machines worked 500 machine hours.

To calculate the variable cost per unit and total fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (2,400 - 2,200) / (1,000 - 500)

Variable cost per unit= \$0.4 per hour

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 2,400 - (0.4*1,000)= \$2,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,200 - (0.4*500)= \$2,000

Total cost= 2,000 + 0.4x

x= machine hour

Finally, the total cost for 1,200 machine hours:

Total cost= 2,000 + 0.4*1,200

Total cost= \$2,480

## Related Questions

You decide to use your department store charge card .. a lot! After seven weeks you have racked up \$1,400 of debt. Your minimum monthly payment is \$45, and is paid at the end of each month. If the APR is 16.80%, how long will it take you to pay the loan off? (Assume that you make the minimum payment until the debt is entirely paid off.)

41 months

Explanation:

For computing the time period we have to use the NPER formula i.e shown in the attachment

Given that,

Present value = \$0

Future value = \$1,400

Rate of interest = 16.80% ÷ 12 months = 1.4%

PMT = \$45

The formula is shown below:

= NPER(Rate;PMT;PV;-FV;type)

The future value come in negative

So, after applying the above formula, the time period is 41 months

Alpha Company sold goods to customers who used Under-the-Hill bank credit cards. Credit card sales on July 8, 2016 amounted to \$12,000 and were subject to a 2.5% bank fee. Use this information to prepare the General Journal entry (without explanation) for July 8, 2016.

Explanation:

The journal entry for July 8, 2016 is shown below:

Bank A/c Dr                       \$11,700

Commission fee A/c \$300 (\$12,000 × 2.5%)

To Sales A/c                    \$12,000

Since the sales is recorded at \$12,000 which includes commission fee of \$300 (\$12,000 × 2.5%) , the remaining balance i.e \$11,700 (\$12,000 - \$300) would be debited to the bank account.

Brian is studying the LML Process. He is learning about the connection between the brain and mind and is conceptualizing it in a specific sequence. The correct sequence is __________.mind, brain–mind interface, stimuli, brain stimuli, brain–mind interface, brain, mind brain–mind interface, stimuli, mind stimuli, brain, brain–mind interface, mind

The correct answer is letter "D": stimuli, brain, brain–mind interface, mind.

Explanation:

The Let Me Learn (LML) Process is an explanation of what steps are followed in our brain while learning something. At first, there are stimuli captured by our senses. Our senses regulate the stimuli and let the stimuli enter our brain. The brain must translate the stimuli thanks to our working memory staying in the brain-mind interface to finally store the translated information into the mind and use the information as necessary.

The correct answer is letter "D": stimuli, brain, brain–mind interface, mind.

Explanation:

The Let Me Learn (LML) Process is an explanation of what steps are followed in our brain while learning something. At first, there are stimuli captured by our senses. Our senses regulate the stimuli and let the stimuli enter our brain. The brain must translate the stimuli thanks to our working memory staying in the brain-mind interface to finally store the translated information into the mind and use the information as necessary.

The following data apply to Grullon-Ikenberry Inc. (GII): Value of operations \$1,000, Short-term investments \$100, Debt \$300, Number of shares 100; The company plans on distributing \$50 million as dividend payments. What will the intrinsic per share stock price be immediately after the distribution?pital-budget-850-000-wants-maintain-target-capital-structure-35-debt-65--q3670174

1) \$6.32

2) \$7.50

3) \$6.65

4) \$7.35

The correct  option is the second one ,\$7.50

Explanation:

The value of operations is \$1,000

If dividends of \$50 million is paid,such cash would be paid  would be gotten from short-term investments of \$100 million since it is easily convertible to cash without losing a significant portion of its value,hence the short term investments reduce to \$50  million

\$ million

Value of operations                                 \$1000

plus value of non-operating assets           \$50

Value of firm                                             \$1050

less value of debt                                    (\$300)

Intrinsic value of the firm                       \$750

Intrinsic value of share=\$750/100=\$7.5

The intrinsic value per share is the total value attributable to common stock divided by the number of common stock in issue.

​Simmons, Inc. uses the​ lower-of-cost-or-market method to value its inventory that is accounted for using the LIFO method. Data regarding an item in its inventory is as​ follows: Cost \$26 Replacement cost 20 Selling price 30 Cost of completion and disposal 2 Normal profit margin 7 What is the​ lower-of-cost-or-market for this​ item?

The lower- of- market- or cost for the item is \$21

Explanation:

In the lower of cost or market, the market begins at the replacement cost which is \$20, which is then limited or restricted to a ceiling and a floor.

The ceiling is computed as:

Ceiling = Selling price - Completion cost

where

selling price is \$30

Completion cost is \$2

Putting the values above:

Ceiling = \$30 - \$2

Ceiling = \$28

Computing the floor as:

Floor = Ceiling - Normal profit margin

Floor = \$28 - \$7

Floor = \$21

As the market cannot be lower than the floor which is \$21. Therefore, the lower of cost which is \$26 and the market which is \$21. But have to take lower. So, it is \$21.

_______ is the phenomenon of the shifting of individual management styles to become more similar to one another.