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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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:
Month
Electricity Cost
Direct Labor
January
April
July
October
P6,750
7,500
8,500
7,250
Hours
1,500
1,700
2,000
1,600
Required: Determine the following using the high-low method.
a. Variable cost per hour
b. Fixed Cost
Cost equation/function
d. How much is the total cost with 2,200 labor hours?
C.
Transcribed Image Text: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: Month Electricity Cost Direct Labor January April July October P6,750 7,500 8,500 7,250 Hours 1,500 1,700 2,000 1,600 Required: Determine the following using the high-low method. a. Variable cost per hour b. Fixed Cost Cost equation/function d. How much is the total cost with 2,200 labor hours? C.
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