Using the high-low method, what is the fixed costs?
Q: How does the variable cost per unit change as the level of activity (or cost driver) increases? Why?
A: A variable cost changes is directly proportional to the change in the level of activity or cost…
Q: With reference to Bryony’s Pasta, distinguishbetween fixed costs and variable costs.
A: The total cost can be divided into two categories. Fixed cost: cost indicates the fixed and does…
Q: What is meant by an activity base when dealing with variable costs? Give several examples of…
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Q: Give some examples of Fixed Costs?
A: Fixed costs: Fixed costs are those costs which remain unchanged even there is a change in the…
Q: Cost-volume-profit analysis favors either variable costing or absorption costs. Why?
A: The CVP analysis is used to analyse the impact of changes in variable cost and fixed cost on net…
Q: In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost…
A: Mixed cost also called the semi variable cost . Mixed cost contains both fixed and variable cost .…
Q: What is lower of cost/market, and why is it used? Provide an example.
A: Inventory is a term which depicts the amount of finished goods prevailing in the business. The…
Q: Explain the methods of segregating semi-variable costs into fixed and variable cost.
A: Variable cost is the cost which remains variable and fluctuate according to the level of production.…
Q: Define unavoidable fixed costs.
A: Unavoidable fixed costs are fixed costs which cannot be avoided by discontinuing a product line or…
Q: What is the similarity of fixed costs with variable costs and its differences.
A: similarities and differences of fixed cost and variable cost are discussed in step 2
Q: Using the high-low method, determine the cost function for each cost?
A: High low method of cost estimation says that costs at highest level and lowest level are to be taken…
Q: What is a fixed cost? Give an example.
A: Fixed Cost: Fixed costs are those costs which remain unchanged even there is a change in the…
Q: a) Estimate the fixed cost and variable cost using the high-low method.
A: As per our protocol we provide solution to the one question only but as you have asked two different…
Q: Define variable cost and fixed cost. Give an example of each?
A: Variable Cost: Variable cost refers the cost which varies due to the change in the level of…
Q: What are the consequences of broad averaging on costs? Explain?
A: Broad Averaging:Broad averaging is also known as peanut butter cost is a costing approach of…
Q: What are costs that have characteristics of both a variable and fixed cost?
A: A cost that has characteristics of both a variable cost and a fixed cost is called a mixed costs or…
Q: Types of Fixed and Variable cost with the help of example and graph?
A: Costs are the total spent amount for the expenditures and for producing the goods and services.…
Q: determine the variable cost per unit and the fixed cost using the high -low method.
A: Variable Costs :- Variable costs are expenses that vary depending on the volume of goods or services…
Q: What is a variable cost? Identify two variable costs.
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Q: What is the correlation between fixed, variable, and semi-variable costs??
A: Introduction:- Fixed Costs – Costs are same irrespective of the number of output produced Variable…
Q: Giving examples, distinguish between Variable cost and Fixed costs
A: Introduction: Costs: Costs are of two types: 1 ) Fixed costs 2 ) variable costs
Q: Explain an example of fixed cost.
A: Cost: It is the economic value of resources incurred by an organization for producing a product or…
Q: What are the expected cost takedown rates?
A: When a company offers new issues in the market, such as stocks or bonds, they appoint an…
Q: Which costs make up “prime” costs？
A: Prime cost is that cost, which is directly concerned with the product such as direct material,…
Q: What is a relationship between fixed, variable and semi-variable cost?
A: Cost can be defined as the amount incurred upon the production of goods and services for the final…
Q: Why is fixed costs changing?
A: In the given problem some estimates related to selling price and cost to be incurred are given and…
Q: What is variable costing?
A: Variable Costing: “Variable costing is a method that allocates only variable manufacturing costs to…
Q: Define prime costs with an example?
A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…
Q: Understand thedifferences between variablecosts and fixed costs.
A: Fixed costs are those costs which remain fixed regardless of output but variable costs are those…
Q: be considered
A: The phrase "mixed costs" in accounting refers to costs and expenses that include two components:…
Q: What is the relationship among fixed costs, contribution margin, and thebreak-even point?
A: Fixed costs: These are the costs incurred by the organization irrespective of the volume of…
Q: E is also known as: e of the options version costs ni-fixed cost tuating cost-
A: Cost is the total amount or expenditure which a company, an individual and a manufacturer incurred…
Q: If fixed costs increase, what would be the impact on the (a) contribution margin?
A: Fixed cost means the cost which do not vary with the level of output where as variable cost will…
Q: What is a fixed cost? A variable cost? A mixed cost? Give an example of each
A: Costs are the expenses incurred in business. It means costs incurred for the manufacturing of…
Q: following Fixed costs, variable costs, sales, breakeven point value, safety threshold ratio
A: Given in the question: Sales 8500 Raw Materials 2350 Insurance 275 Loan…
Q: Discuss the relationship between fixed costs, variable costs and risk.
A: 1. Fixed cost Fixed assets are assets that are used in an organization for the purpose of long-term…
Q: What happens to the total variable costs and the total fixed costs when the level of activity…
A: Formula: Total cost = Variable cost + Fixed cost Sum of both variable and fixed cost derives the…
Q: What are direct out-of-pocket costs
A: There are various types of costs, some of which may be reimbursed and others that may not be. Direct…
Q: What is a mixed cost? Give an example.
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: What can be the Direct-Variable Costs?
A: Fixed cost means the cost which do not vary with the level of output. Variable cost means the cost…
Q: Explain the concept of relevant range and
A: Fixed costs refer to the expenses that do not increase or decline with changes in the company's…
Q: What does it mean that a cost is a direct, product, and variable cost?
A: The cost represents the value incurred by the corporation in making the product ready to sell in the…
Q: What is the variable cost? Give an example.
A: Variable costs tend to vary in direct proportion to the volume of production. If a cost is variable,…
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- The electricity costs and machine hours for a period of 6 months are as follows Hours CostsMonths machine electricityJanuary 2,000 $ 4,800February 2,500 $ 5,200March 3,000 $ 5,400April 2,400 $ 5,000May 2,800 $ 5,600June 2,200 $ 5,000Using the high-low method, what is the formula to use to determine electricity costs at different volumes of electricity hours? (Fixed cost + variable cost × volume). a. Electricity costs = $ 2,800 + ($ 1.00 x number of machine hours) b. Electricity costs = $ 2,600 + ($ 1.00 x number of machine hours) c. Electricity costs = $ 400 + ($ 1.67 x number of machine hours) d. Electricity costs = $ 3,600 + ($ .60 x number of machine hours)The controller of Sunland Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. TotalElectricity Costs TotalMachine Hours January $2,490 250 February 3,000 320 March 3,530 460 April 4,740 695 May 3,160 450 June 4,900 790 July 4,130 625 August 3,890 590 September 5,170 680 October 4,220 610 November 3,290 320 December 6,410 810 Determine the fixed- and variable-cost components using the high-low method. Fixed-costs $ Variable-costs $ What electricity cost does the cost equation estimate for a level of activity of 460 machine hours? Electricity costs $ By what amount does this differ from March’s observed cost for 460 machine hours?…9.-Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost Machine Hours January $26,500 10,100 February 35,400 17,800 March 28,300 11,500 April 31,500 15,200
- Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. September October November December a) £0.08 b) £4.86 c) £0.25 d) £12.50 Cost Machine Hours £4,100 22,000£3,700 18,000£3,900 19,000 £4,500 28,000otal cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following is the cost equation? Periods Total Cost No.of Units January 21,410 210 February 22,140 240 March 22,875 275 April 23,295 295 May 23,620 310 June 23,830 320 July 24,350 350 Select one: a. Y=18000+18*X b. Y=24500+11*X c. Y=17000+21*X d. Y=18000+19*XIn applying the high-low method, what is the fixed cost? Month Miles Total Cost January 80000 $142000 February 54000 120000 March 70000 138000 April 84000 140000
- Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost Machine Hours January $26,500 9,600 February 38,700 17,800 March 28,600 11,600 April 30,200 14,600 a.$9,774 b.$20,769 c.$39,094 d.$12,217Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,100 15,000 April 2,700 10,000 May 2,900 12,000 June 3,600 18,000 a.$10.00 b.$0.63 c.$0.11 d.$0.67Given the following cost and activity observations for Bounty Company’s utilities, use the high-low method to determine Bounty’s variable utilities cost per machine hour. Round to the nearest cent. Cost Machine Hours March $3,139 14,709 April 2,650 9,989 May 2,817 12,342 June 3,656 17,720 a. $0.74 b. $0.13 c. $1.43 d. $0.78
- The controller of Crane Production has collected the following monthly cost data for analyzing the behavior of electricity costs. TotalElectricity Costs TotalMachine Hours January $2,620 230 February 3,010 370 March 3,590 460 April 4,770 695 May 3,240 400 June 4,850 790 July 4,100 620 August 3,850 550 September 5,110 680 October 4,300 620 November 3,310 370 December 9,000 810 (a) Determine the fixed costs and unit variable costs using the high-low method. Total fixed costs $enter a dollar amount Variable cost per machine hourRecent IT costs incurred each month at the head office of Dawn Ltd are detailed below. Apply the high/low method to establish how the cost behave and then select the correct prediction of cost for a month in which 770 client projects will be completed by the company month Number of clients project IT cost (£) 1 730 £116150 2 800 £123000 3 625 £112500 4 790 £120980 a. £94,200 b. £121,200 c. £122,000 d. £119,780Pablo 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
