Dollarwise Trainers Provides a Personalized Training Program That Is Popular

question 82

Essay

Dollarwise Trainers provides a personalized training program that is popular with many companies.The number of programs offered over the last five months,and the costs of offering these programs are as follows:

	Programs Offered	Costs Incurred
Jan	55	$15,400
Feb	45	14,050
Mar	60	18,000
April	50	14,700
May	75	19,000

a. Using the hig-low inethod compute the varuable cost per progam. and the total fixed cost per imonth.
b.Using the least squares regression method compute the variable cost per progran and the total fixed cost per month

---

Definitions:

Underapplied Overhead

Represents the situation when the allocated factory overhead costs are less than the actual factory overhead costs incurred.

Predetermined Overhead Rates

A rate calculated before a period begins, used to estimate the manufacturing overhead costs that will be allocated to each unit of product.

Cost of Goods Sold

The total direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Activity Rate

A measure used in cost accounting to allocate costs to products or services based on the activities required to produce them.