The following information is available for a company's maintenance cost over the last seven months. Month June July August Units Produced 100 190 September October November December 110 140 4,770 5,430 6,750 7,410 3,450 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Maintenance Cost $ 4,550 6,530 200 230 50

The following information is available for a company's maintenance cost over the last seven months. Month June July August Units Produced 100 190 September October November December 110 140 4,770 5,430 6,750 7,410 3,450 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Maintenance Cost $ 4,550 6,530 200 230 50

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

See similar textbooks

Similar questions

The following information is available for a company’s maintenance cost over the last seven months. Month Units Produced Maintenance Cost June 90 $ 4,190 July 180 6,260 August 120 4,880 September 150 5,570 October 210 6,950 November 240 7,640 December 60 3,500 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per maintenance hour 0 Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs
The following information is available for a company's maintenance cost over the last seven months. Month Units Produced Maintenance Cost June 180 $ 10,900 July 360 13,800 August 240 10,200 September 300 12,000 October 420 13,800 November 480 16, 200 December 120 7,200 Using the high-low method, the variable component of its maintenance cost is:
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month TotalMaintenance Costs TotalMachine Hours January $2,817 3,734 February 3,201 4,268 March 3,841 6,402 April 4,801 8,429 May 3,414 5,335 June 4,930 8,536 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour $ eTextbook and Media Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Fixed costs $
The following information is available for a company's maintenance cost over the last seven months. Maintenance Cost Month Units Produced June 110 July 170 August 130 September 160 October 220 November December 250 70 $ 4,780 6,400 5,320 6,130 7,750 8,560 3,700 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per unit produced Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs
The controller of Sunland Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month TotalMaintenance Costs TotalMachine Hours January $2,590 330 February 2,890 380 March 3,490 530 April 4,390 660 May 3,090 530 June 5,470 730 Determine the variable cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour $enter the variable cost per machine hour in dollars rounded to 2 decimal places Determine the fixed cost components using the high-low method. Total fixed costs $enter the total fixed costs in dollars
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 60 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Change in cost Change in volume Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Maintenance Cost $ 4,190 6,260 4,880 5,570 6,950 7,640 3,500 Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs High-Low method - Calculation of variable cost per unit produced Cost at high point minus cost at low point Volume at high point minus volume at low point
The controller of Blossom Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs: Total Total Month Maintenance Costs Machine Hours January $2,750 2,850 February 3,150 4,400 March 4,000 6.250 April 4,520 8,250 May 3,320 5.000 June 5,693 8,300 (a1) Determine the variable-cost component using the high-low method. (Round answer to 2 decimal places e.g. 12.25.)
The following information is available for a company’s maintenance cost over the last seven months. Month Units Produced Maintenance Cost June 180 $ 10,900 July 360 13,800 August 240 10,200 September 300 12,000 October 420 13,800 November 480 16,200 December 120 7,200 Using the high-low method, the variable component of its maintenance cost is: Multiple Choice $30.00 per unit. $25.00 per unit. $22.50 per unit. $16.11 per unit. $22.00 per unit.
The controller of Sandhill Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month January February March April May June Variable cost per machine hour Total Maintenance Costs Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Determine the fixed cost components using the high-low method. Fixed costs $2,825 3,210 3,852 4,815 3,424 5,476 Total Machine Hours 3,740 4,280 6,420 8,453 5,350 8,560 $ $
Pablo Company wishes to determine the fixed portion of its maintenance expenses (a semi-variable expense), as measured against direct labor hours for the first three months of the year. Information for the first quarter is as follows (refer to the attached picture): What is the fixed portion of Pablo Company’s maintenance expense using high-low method? * direct hours labor maintenance costs January 25000 210000 February 30000 240000 march 27000 222000
Jake’s Roof Repair has provided the following data concerning its costs:Fixed Cost Cost perper Month Repair-HourWages and salaries ..................... $23,200 $16.30Parts and supplies ........................ $8.60Equipment depreciation ................ $1,600 $0.40Truck operating expenses ........... $6,400 $1.70Rent .............................................. $3,480Administrative expenses ............... $4,500 $0.80For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected towork 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales tobe $44.50 per repair-hour.Required:Prepare a report showing the company’s activity variances for May
The following information is available for a company's maintenance cost over the last seven months. Month June July August September October November December Units Produced 90 180 120 150 210 240 60 Change in cost Change in volume Using the high-low method, estimate both the fixed and variable components of its maintenance cost. Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit produced Total variable costs at the high point Total fixed costs Maintenance Cost $ 4,590 7,110 5,430 6,270 7,950 8,790 3,750 Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit produced Total variable costs at the low point Total fixed costs High-Low method - Calculation of variable cost per unit produced Cost at high point minus cost at low point Volume at high point minus volume at low point $5,040 Variable cost per unit produced = 180 $ 28.00