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. Cost Machine Hours September £4,100 22,000 October £3,700 18,000 November £3,900 19,000 December £4,500 28,000 a) £0.08 b) £4.86 c) £0.25 d) £12.50
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. Cost Machine Hours September £4,100 22,000 October £3,700 18,000 November £3,900 19,000 December £4,500 28,000 a) £0.08 b) £4.86 c) £0.25 d) £12.50
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...
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Question
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.
Cost Machine Hours
September £4,100 22,000
October £3,700 18,000
November £3,900 19,000
December £4,500 28,000
a) £0.08
b) £4.86
c) £0.25
d) £12.50
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