Finch Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. Sept. Oct. Nov. Dec. Service hours 114 140 258 422 322 332 Revenue $ 6,612 $ 8,120 $ 14,964 $ 24,476 $ 18,676 $ 19,256 Operating costs $ 4,220 $ 5,240 $ 7,190 $ 11,180 $ 9,200 $ 10,530 Required What is the average service revenue per hour in each month and the overall average for the six-month period? Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. Determine the average contribution margin per hour.

Finch Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Month July Aug. Sept. Oct. Nov. Dec. Service hours 114 140 258 422 322 332 Revenue $ 6,612 $ 8,120 $ 14,964 $ 24,476 $ 18,676 $ 19,256 Operating costs $ 4,220 $ 5,240 $ 7,190 $ 11,180 $ 9,200 $ 10,530 Required What is the average service revenue per hour in each month and the overall average for the six-month period? Use the high-low method to estimate the total monthly fixed cost and the variable cost per hour. Determine the average contribution margin per hour.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.13MCE: Reconstructing a Beginning Account Balance During the month, services performed for customers on...

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	Month
	July	Aug.	Sept.	Oct.	Nov.	Dec.
Service hours		114			140			258		422		322		332
Revenue	$	6,612		$	8,120		$	14,964	$	24,476	$	18,676	$	19,256
Operating costs	$	4,220		$	5,240		$	7,190	$	11,180	$	9,200	$	10,530