Managerial accounting

Supply costs at Lattea Corporation’s chain of gyms are listed below:

Client-Visits Supply Cost
March 11,653      $28,567
April 11,449      $28,401
May 11,981      $28,825
June 12,600      $28,904
July 11,713      $28,628
August 11,199       $28,227
September 11,993      $28,826
October 11,684      $28,584
November 11,832      $28,709

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Management believes that supply cost is a mixed cost that depends on client-visits. Using the high-low method to estimate the variable and fixed components of this cost, those estimates would be closest to:(Round your Variable cost per unit to 2 decimal places.)

$1.06 per client-visit; $15,798 per month

$0.52 per client-visit; $22,351 per month

$0.48 per client-visit; $22,856 per month

$2.17 per client-visit; $28,629 per month

32. In May, Hervey Inc. incurred $60,000 of direct labor costs and $3,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

debit to Work in Process of $63,000

credit to Manufacturing Overhead of $3,000

credit to Work in Process of $63,000

debit to Manufacturing Overhead of $3,000

33.
At the beginning of the year, manufacturing overhead for the year was estimated to be $266,400. At the end of the year, actual direct labor-hours for the year were 22,500 hours, the actual manufacturing overhead for the year was $264,300, and manufacturing overhead for the year was overapplied by $5,700. If the predetermined overhead rate is based on direct labor-hours, then the estimated direct labor-hours at the beginning of the year used in the predetermined overhead rate must have been: (Round your intermediate calculations to 2 decimal places.)

21,800 direct labor-hours

22,200 direct labor-hours

20,700 direct labor-hours

22,500 direct labor-hours

34.
Nikkel Corporation, a merchandising company, reported the following results for July:

Sales $464,000
Cost of goods sold (all variable) $173,500
Total variable selling expense $  24,600
Total fixed selling expense $  23,000
Total variable administrative expense $  8,900
Total fixed administrative expense $  38,200

The contribution margin for July is:

$257,000

$195,800

$402,800

$290,500

35.
[The following information applies to the questions displayed below.]

Bakker Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.

The predetermined overhead rate for the year was:

$29.66

$30.90

$32.92

$31.60

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