Question Assignment description
Echeverria SA is an Argentinian manufacturing firm whose complete manufacturing unit overhead prices fluctuate considerably from yr to yr in keeping with the variety of machine-hours labored in its manufacturing facility. These prices (in Argentinian pesos) at excessive and low ranges of exercise over latest years are given under:Degree of ActivityLowHigh Machine-hours 58,800 78,400 Whole manufacturing unit overhead prices 263,660 pesos 296,980 pesosThe manufacturing unit overhead prices above encompass oblique supplies, lease, and upkeep. The corporate has analyzed these prices on the 58,800 machine-hours stage of exercise as follows: Oblique supplies (variable) 82,320 pesos Lease (mounted) 131,000 Upkeep (blended) 50,340 Whole manufacturing unit overhead prices 263,660 pesosFor planning functions, the corporate needs to interrupt down the upkeep value into its variable and glued value components.Required:1.Estimate how a lot of the manufacturing unit overhead value of 296,980 pesos on the excessive stage of exercise consists of upkeep value. (Trace: To do that, it could be useful to first decide how a lot of the 296,980 pesos value consists of oblique supplies and lease. Take into consideration the habits of variable and glued prices.) (Don’t spherical intermediate calculations.) Upkeep value at excessive stage of exercise pesos 2.Utilizing the high-low technique, estimate a value formulation for upkeep. (X signify per machine-hour.) (Around the “Variable value per machine-hour” to 2 decimal locations and “Mounted value” to the closest complete quantity.) Y = pesos + peso X3.What complete overhead prices would you anticipate the corporate to incur at an working stage of 64,680 machine-hours? (Don’t spherical intermediate calculations. ) Whole manufacturing unit overhead value pesos
