sing the high-low method, determine which month is the lowest?  Using the high-low method, determine the variable cost per tour mile traveled. (Use this format 0..123)  Using the high-low method, determine fixed cost per month (Use this format 10,000)  Using the high-low method Develop a formula to express the cost behavior exhibited by the company’s maintenance cost. (Use this format Y=2a+

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter13: Budgeting And Standard Costs
Section: Chapter Questions
Problem 13.6.3MBA
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Philippine Island Tours has incurred the following bus maintenance costs during the recent tourist season.

Answer the following:

  1. Using the high-low method, determine which month is the highest?
  2. Using the high-low method, determine which month is the lowest? 
  3. Using the high-low method, determine the variable cost per tour mile traveled. (Use this format 0..123) 
  4. Using the high-low method, determine fixed cost per month (Use this format 10,000) 
  5. Using the high-low method Develop a formula to express the cost behavior exhibited by the company’s maintenance cost. (Use this format Y=2a+10)
  6. Using the high-low method, predict the level of maintenance cost that would be incurring during the month of May when 34,000 tour miles are driven. (Use this format 10,000)
Month
Miles Traveled by Tour
Maintenance
Buses
Cost
November 12,750
P17,100
December 15,900
P17,400
January
19,050
P17,550
February
22,500
P18,000
March
30,000
P18,750
April
12,000
P16,500
Transcribed Image Text:Month Miles Traveled by Tour Maintenance Buses Cost November 12,750 P17,100 December 15,900 P17,400 January 19,050 P17,550 February 22,500 P18,000 March 30,000 P18,750 April 12,000 P16,500
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