Mudhaiby Co. gathered the following information on power costs and factory machine usage for the last Six months: Month Power Cost Factory Machine Hours | January R.O.24,400 13,900 February 29,200 17,600 March 29,000 16,800 April 22,340 13,200 May 19,900 11,600 June 14,900 6,600 Instructions Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers. (a) What is the estimated variable portion of power costs per factory machine hour? (b) What is the estimated fixed power cost each month? (c) If it is estimated that 10,000 factory machine hours will be run in July, what is the expected total power cost for July?

Q: The controller of Wildhorse Industries has collected the following monthly expense data for use in…

A: High low method is used as an attempt to segregate the variable and fixed costs using a limited set…

Q: 2. Al-Bustan Co. gathered the following information on total costs and factory machine usage for the…

A: Mixed Cost  are cost which fluctuates with the level of activity but not in exact proportion.For…

Q: Classifying Costs The following report was prepared for evaluating the performance of the plant…

A:

Q: 11) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has detemined that…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Sterling Glass Company uses the high-low method to analyze mixed costs. The following information…

A: Formula used: Cost formula = Fixed Cost + Variable Cost per hour × Number of Hours

Q: Factory overhead cost and production data for a firm for a year were as follows:   Variable Cost…

A: Factory overhead means all indirect costs incurred in factory related to production and…

Q: Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: You have been given the following information about the production of Bramble Co., and are asked to…

A: Cost Variance- Cost variance is a difference between the actual amount spent and the amount…

Q: Nas Corporation's managers in the stamping department have been studying the overhead cost and the…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost…

Q: The following report was prepared for evaluating the performance of the plant manager of Marching…

A: The total of all resources used in the manufacturing of a good is referred to as manufacturing…

Q: Hot'lanta, Inc, which uses the high-low method to analyze cost behavior, has determined that machine…

A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…

Q: 1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: As part of his job as cost analyst, Max Thompson collected the following information concerning the…

A: High Point 5,120 MH $  45,825   Low Point 4,180 MH $  42,535   Difference 940 MH $    3,290

Q: The controller of Norton Industries has collected the following monthly expense data for use in…

A: Compute the variable costs per machine hour using high low method:

Q: You have been given the following information about the production of Bramble Co., and are asked to…

A: The budgeted fixed cost refers to the expenses which does not vary from year to year like the…

Q: Nas Corporation's managers in the stamping department have been studying the overhead cost and the…

A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…

Q: Mema Company makes motorcycles. Management wants to estimate overhead costs to plan its operations.…

A: High low method is a method of cost estimation in which costs at highest level of activity and…

Q: As part of his job as a cost analyst, Max Thompson collected the following information concerning…

A:

Q: Blaney Company has one mixed cost. It uses machine hours as the activity level. Using the high - low…

A: Variable cost represents the cost that varies with the change in output. Whereas, fixed cost does…

Q: Adriana Corporation manufactures football equipment. In planning for next year, the managers want to…

A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Q: electricity cost

A: High-low method refers to the method which is used for splitting the semi-fixed or variable cost…

Q: After reading an article about activity-based costing in a trade journal for the furniture industry,…

A: In This Numerical Has Covered the Concept of Activity Based Costing and Traditional Cost for Valuing…

Q: 2. Al-Bustan Co. gathered the following information on total costs and factory machine usage for the…

A: Under high-low method, the month having highest activity and the month having lowest activity is…

Q: The following wages costs were incurred for the manufacturing of Espresso pods at Nespresso: Labor…

A: Under high-low method the lowest and highest activities are used to compute variable cost per unit…

Q: The controller of Hall Industries has collected the following monthly expense data for use in…

A: A variable cost is a business expense that varies with how much a company produces or sells.…

Q: roduction reports for the third quarter show the following data:   Month Machine hours Direct…

A: Overheads are the indirect costs that are being incurred in business and that can not be directly…

Q: Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine…

A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…

Q: Calculate the Variable Cost using the high-low method.

A: Using high low method, variable cost per unit= Highest activity cost- Lowest activity costHighest…

Q: Hapza cleaning services has opening hours that fluctuate from month to month. The electricity costs…

A: A high low method of cost estimation is used to calculate the variable cost and fixed cost of the…

Q: Adriana Corporation manufactures football equipment. In planning for next year, the managers want to…

A: a. Calculation of fixed and variable of overhead costs based on machine hours : High low method :…

Q: The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co.…

A: Cost of Production- Cost for Production refers to entire expenses which are experienced within the…

Q: Using the high-low method of cost estimation, total fixed costs are:

A: Variable cost per unit using high-low method = (Highest activity cost - Lowest activity cost)/…

Q: The  following  data  obtained  from  XYZ  Corporation  represent  the  total  overhead  cost  and…

A: 1. The relationship between the working hours and the overhead cost are mixed because some are fixed…

Q: Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine…

A: A high low method is known to separate the mixed cost into fixed cost and variable cost. In this…

Q: Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the…

A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…

Q: As part of his job as cost analyst, Max Thompson collected the following information concerning the…

A: The cost of production includes variable as well as fixed cost.

Q: The Fuller Company has provided the following information Factory Overhead $460,475 $565,280…

A: VARIABLE COST : ( FACTORY OVERHEAD AT HIGHEST LABOUR HOURS - FACTORY OVERHEAD AT LOWEST LABOUR HOURS…

Q: Adriana Corporation manufactures football equipment. In planning for next year, the managers want to…

A: The mixed cost comprises of both fixed and variable costs. The fixed and variable costs can be…

Q: Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs.…

A: The manufacturing overhead is applied to production on the basis of predetermined overhead rate.

Q: Hilton Company’s volume and the corresponding total cost information of the factory for past eight…

A: Variable cost means the cost which vary with the level of output where as fixed cost remains fixed…

Q: Hot'lanta, Inc., which uses the high-low method to analyze cost behavior, has determined that…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Mr pal furnishes the following data relating to the manufacture of a standard during the month of…

A:

Q: arkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that…

A: Variable cost per machine hour=(Highest activity cost-Lowest activity cost)/(Highest activity hours…

Q: A company manufacturing two products furnishers the following data for a year: Product Annual Output…

A: Cost allocation is a process of assigning or allocating indirect cost to each and every unit using a…

Q: Miniconjou Co. provides the following data for the most recently completed calendar year. Answer the…

A: Solution..   Estimated machine hours = 5,280  Estimated fixed overhead costs = $33,000  Variable…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.