A beverage company producing grape juices is about to apply High-Low method to estimate their energycost behavior. The following costs were incurred in the past 12 months:Energy cost$70,200$6,150Monthgrape juice produced(pints)JanuaryFebruary105,00061,600March66,000$6,000April72,000$67,350May90,000$68,700June96,000$70,050July120,000$84,000August90,000$68,400September90,000$69,000October84,000$68,100November127,000$74,300December117,000$74,850 Refer to the following table showing the cost application bases used to distribute various costsamong the hospital's divisions:Cost Pool:Cost Allocation BaseAnnual CostFacilitiesSquare feet of space$395,000$46,000UtilitiesCubic feet of spaceGeneral AdministrationBudgeted number of employees$445,500Community OutreachBudgeted dollars of patient billings$73,000Below are the amounts of each cost allocation base associated with each division:square feet cubic feetNumber of employees Patient Billings$4,000,000General Medicine15,000135,000308,000$2,500,000SurgeryMedical support100,000209,00090,00020$1,500,000Administration8,00075,00030$0Total:40,000400,000100$8,000,000

The high-low method is used to find the variable costs and fixed costs involved in a mixed cost. The…

A beverage company producing grape juices is about to apply High-Low method to estimate their energy cost behavior. The following costs were incurred in the past 12 months: Month grape juice produced(pints) Energy cost January February 105,000 $70,200 61,600 $66,150 March 66,000 $66,000 April 72,000 $67,350 May 90,000 $68,700 June 96,000 $70,050 July 120,000 $84,000 August 90,000 $68,400 September 90,000 $69,000 October 84,000 $68,100 November 127,000 $74,300 December 117,000 $74,850

A beverage company producing grape juices is about to apply High-Low method to estimate their energy cost behavior. The following costs were incurred in the past 12 months: Month grape juice produced(pints) Energy cost January February 105,000 $70,200 61,600 $66,150 March 66,000 $66,000 April 72,000 $67,350 May 90,000 $68,700 June 96,000 $70,050 July 120,000 $84,000 August 90,000 $68,400 September 90,000 $69,000 October 84,000 $68,100 November 127,000 $74,300 December 117,000 $74,850

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter18: Activity-based Costing

Section: Chapter Questions

Problem 5MAD: Hospital activity-based costing analysis Lancaster County Hospital uses activity-based costing to...

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