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The cost data for Evencoat Paint for the year 2019 is as follows: Month Gallons of Paint Produced   Equipment Maintenance Expenses January   110,000       $70,700   February   68,000       66,800   March   71,000       67,000   April   77,000       68,100   May   95,000       69,200   June   101,000       70,300   July   125,000       70,400   August   95,000       68,900   September   95,000       69,500   October   89,000       68,600   November   128,000       72,800   December   122,000       71,450   A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $fill in the blank 1 Variable cost $fill in the blank 2 B. Predict the maintenance costs if 90,000 gallons of paint are produced. Maintenance cost $fill in the blank 3 C. Predict the maintenance costs if 81,000 gallons of paint are produced. Maintenance cost $fill in the blank 4 D. A scatter graph of the cost data is below.   The relationship between gallons of paint produced and equipment maintenance expenses is:

The cost data for Evencoat Paint for the year 2019 is as follows: Month Gallons of Paint Produced   Equipment Maintenance Expenses January   110,000       $70,700   February   68,000       66,800   March   71,000       67,000   April   77,000       68,100   May   95,000       69,200   June   101,000       70,300   July   125,000       70,400   August   95,000       68,900   September   95,000       69,500   October   89,000       68,600   November   128,000       72,800   December   122,000       71,450   A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Fixed cost $fill in the blank 1 Variable cost $fill in the blank 2 B. Predict the maintenance costs if 90,000 gallons of paint are produced. Maintenance cost $fill in the blank 3 C. Predict the maintenance costs if 81,000 gallons of paint are produced. Maintenance cost $fill in the blank 4 D. A scatter graph of the cost data is below.   The relationship between gallons of paint produced and equipment maintenance expenses is:

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
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The cost data for Evencoat Paint for the year 2019 is as follows:

Month Gallons of
Paint
Produced		   Equipment
Maintenance
Expenses
January   110,000       $70,700  
February   68,000       66,800  
March   71,000       67,000  
April   77,000       68,100  
May   95,000       69,200  
June   101,000       70,300  
July   125,000       70,400  
August   95,000       68,900  
September   95,000       69,500  
October   89,000       68,600  
November   128,000       72,800  
December   122,000       71,450  

A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs.

Fixed cost $fill in the blank 1

Variable cost $fill in the blank 2

B. Predict the maintenance costs if 90,000 gallons of paint are produced.

Maintenance cost $fill in the blank 3

C. Predict the maintenance costs if 81,000 gallons of paint are produced.

Maintenance cost $fill in the blank 4

D. A scatter graph of the cost data is below.

 

The relationship between gallons of paint produced and equipment maintenance expenses is:

 
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