The following data obtained from XYZ Corporation represent the total overhead cost and the overhead working hours for the past ten weeks: Period Working-Hours Overhead Costs 1 100 12000 2 60 22000 3 20 10000 4 100 33000 5 80 20000 6 60 16000 7 40 14000 8 120 40000 9 80 22000 10 40 11000 Required 1- Plot the relationship between Working-Hours and overhead Costs 2- Use the high-low method to compute the cost function, relating working-hours and overhead costs 3- What is the increase in maintenance costs for each 1500 working-hours
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
The following data obtained from XYZ Corporation represent the total overhead cost and the overhead working hours for the past ten weeks:
Period Working-Hours Overhead Costs
1 100 12000
2 60 22000
3 20 10000
4 100 33000
5 80 20000
6 60 16000
7 40 14000
8 120 40000
9 80 22000
10 40 11000
Required
1- Plot the relationship between Working-Hours and overhead Costs
2- Use the high-low method to compute the cost function, relating working-hours and overhead costs
3- What is the increase in maintenance costs for each 1500 working-hours
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
