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

Don't use plagiarized sources. Get Your Custom Essay on
Managerial accounting
Just from $13/Page
Order Essay

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

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

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:





[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:





Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.