18. The following information is available for electricity costs for the last six months of theyear:MonthVolumeCostsJuly2,8004.400August5,60010,800September6,40011,400October3.5007,800November2,4004,800December4,2008,100Using high-low method, What is the prediction equation?OY= 100 +3.02 XOY = 200 + 2.83 XOY= 420 + 1.65 Xnone of thc above

High low method is a method of cost estimation in which variable cost per unit and total fixed costs…

Answered: 18. The following information is…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 3EA: Burnham Industries incurs these costs for the month: A. What Is the prime cost? B. What is the...

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The electricity costs and machine hours for a period of 6 months are as follows Hours CostsMonths machine electricityJanuary 2,000 $ 4,800February 2,500 $ 5,200March 3,000 $ 5,400April 2,400 $ 5,000May 2,800 $ 5,600June 2,200 $ 5,000Using the high-low method, what is the formula to use to determine electricity costs at different volumes of electricity hours? (Fixed cost + variable cost × volume). a. Electricity costs = $ 2,800 + ($ 1.00 x number of machine hours) b. Electricity costs = $ 2,600 + ($ 1.00 x number of machine hours) c. Electricity costs = $ 400 + ($ 1.67 x number of machine hours) d. Electricity costs = $ 3,600 + ($ .60 x number of machine hours)
In applying the high-low method, what is the fixed cost? Month Miles Total Cost January 80000 $142000 February 54000 120000 March 70000 138000 April 84000 140000
Assume XYZ Company intends to produce 20000 units next month. Calculate total production costs for the next month if fixed cost is 18000 OMR Total Variable cost 100000 OMR and the Units produced is 10000 Units in the current month. Select one: O a. 200000 OMR O b. 210000 OMR O c. 250000 OMR O d. 218000 OMR
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following is the cost equation? Periods Total Cost No.of Units January 21,410 210 February 22,040 240 March 22,775 275 April 23,195 295 May 23,510 310 June 23,720 320 July 24,350 350 Select one: a. Y=17000+21*X b. Y=20500+23*X c. Y=20000+22.5*X d. Y=23150+25*X
Refer to the gasoline sales time series data in Table 8.1. Compute four-week and five-week moving averages for the time series. Compute the MSE for the four-week and five-week moving average forecasts. What appears to be the best number of weeks of past data (three, four, or five) to use in the moving average computation? Recall that the MSE for the three-week moving average is 10.22.
Utilization rate Delta Air Lines (DAL) reported the following data (in millions) for three recent years. Delta refers to its utilization rates as passenger load factor. Compute the passenger load factor (utilization rate) for each year.
Burnham Industries incurs these costs for the month: A. What Is the prime cost? B. What is the conversion cost?
GF Incorporated, a manufacturer of power systems, usesovertime, inventory, and subcontracting to absorb fluctua-tions in demand. An annual production plan is devised andupdated quarterly. The expected demand and available ca-pacities for the next four quarters are as follows:Relevant cost data are as follows:Regular production cost per unit $20Overtime production cost per unit $25Subcontracting cost per unit $30Inventory holding cost per unit per period $ 3Beginning inventory 0Design a production plan that will satisfy demand at mini-mum cost. Regular Overtime SubcontractingPeriod Demand Capacity Capacity Capacity1 2000 1000 1000 50002 4500 1000 1000 50003 7500 1000 1000 50004 3000 1000 1000 5000
Choose the correct letter of answer At a price of P20, the estimated Magnolia Company’s monthly sales of product is 10,000 units. Variable costs include manufacturing, P6, and distribution, P2. Fixed costs are P24,000 per month. Determine the monthly margin of safety. a. P120,000b. P80,000c. P160,000d. P200,000
The following information is available for a company's cost of sales over the last five months. MonthUnits soldCost of salesJanuary560$28,600February740$34,000March1,300$46,000April2,560$58,000 Using the high-low method, the estimated total fixed cost is:
The following information relates to Blueberry Company’s materials YWorking days per year 240Normal lead time in working days 20Maximum lead time in working days 45 Annual usage 7,200 Assuming that the units of material Y will be required evenly throughout the year, thesafety stock and order point would be Safety Stock Order Pointa 600 600b 600 1,350c 750 600d 750 1,350
Choose the correct letter of answer At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7 per unit. Fixed costs are P24,000 per month. How much is the margin of safety? a. P24,000b. P67,600c. P120,000d. P52,400

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