CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Electricity Cost Direct Labor Hours 1,500 1,700 2,000 1,600 Month January April July October P6,750 7,500 8,500 7,250 Required: Determine the following using the high-low method. a. Variable cost per hour b. Fixed Cost c. Costequation/function d. How much is the total cost with 2,200 labor hours?
CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Electricity Cost Direct Labor Hours 1,500 1,700 2,000 1,600 Month January April July October P6,750 7,500 8,500 7,250 Required: Determine the following using the high-low method. a. Variable cost per hour b. Fixed Cost c. Costequation/function d. How much is the total cost with 2,200 labor hours?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...
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