Given the following cost and activity observations for Smithson Company’s utilities, use the high-low method to calculate Smithson’s fixed costs per month. Do not round intermediate calculations. Cost Machine Hours January $52,200 20,000 February 75,000 29,000 March 57,000 22,000 April 64,000 24,500 a.$22,800 b.$50,600 c.$2,530 d.$1,533
Given the following cost and activity observations for Smithson Company’s utilities, use the high-low method to calculate Smithson’s fixed costs per month. Do not round intermediate calculations. Cost Machine Hours January $52,200 20,000 February 75,000 29,000 March 57,000 22,000 April 64,000 24,500 a.$22,800 b.$50,600 c.$2,530 d.$1,533
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...
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Given the following cost and activity observations for Smithson Company’s utilities, use the high-low method to calculate Smithson’s fixed costs per month. Do not round intermediate calculations.
Cost | Machine Hours | |
January | $52,200 | 20,000 |
February | 75,000 | 29,000 |
March | 57,000 | 22,000 |
April | 64,000 | 24,500 |
a.$22,800
b.$50,600
c.$2,530
d.$1,533
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