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The controller of Sunland Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month   Total Maintenance Costs   Total Machine 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 controller of Sunland Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month   Total Maintenance Costs   Total Machine 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The controller of Sunland Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.

Month
  
Total
Maintenance Costs
  
Total
Machine 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 
 

 

 
 
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