Using the high-low method, estimate both the fixed and variable components of its maintenance cost. The following Information is available for a company's malntenance cost over the last seven months.Maintenance Cost24MonthUnits ProducedJune100JulyAugustSeptemberOctoberNovember3,9505,3904,11e4,5905,5506,0303,150190110140200230December50Using the high-low method, estimate both the fixed and varlable components of Its maintenance cost.High-Low method - Calculation of variable cost per maintenance hourTotal cost at the high pointVariable costs at the high point:Volume at the high point:Variable cost per unit producedTotal variable costs at the high pointTotal fixed costsTotal cost at the low pointVariable costs at the low point:Volume at the low point:Variable cost per unit producedTotal variable costs at the low pointTotal fixed costs

The following Information is avallable for a company's maintenance cost over the last seven months. Month Units Produced Maintenance Cost June 100 %24 July August September October 3,95e 5,390 4,11e 4,59e 5,55e 6,e30 3,150 190 110 140 200 November 230 December 50 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 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 lovw point Variable cost per unit produced Total variable costs at the low point Total fixed costs

The following Information is avallable for a company's maintenance cost over the last seven months. Month Units Produced Maintenance Cost June 100 %24 July August September October 3,95e 5,390 4,11e 4,59e 5,55e 6,e30 3,150 190 110 140 200 November 230 December 50 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 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 lovw point Variable cost per unit produced Total variable costs at the low point Total fixed costs

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

Given 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. Machine Hours March April May June Oa. $0.15 Ob. $1.02 Oc. $0.98 Od. $1.75 Cost $3,007 2,696 2,803 3,778 14,577 10,259 11,668 17,667
Q1:- The following data relate to maintenance costs of Kim company for the last six months of 2010:- Months Activity level- hours (X) Maintenance costs $ (Y) 1 4 24 2 3 22 3 8. 32 4 6. 28 5 7 30 6. 20 Required: 1- Determine variable and fixed costs using a high- low method of activity and writing the cost equation.
Cost of quality report A. Using the information in Exercise 15, identify the cost of quality classification for each activity. B. Prepare a cost of quality report. Assume sales for the period were 4,000,000. Round percentages to one decimal place. C. Interpret the cost of quality report.
Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-low method, prepare a cost formula for the receiving activity. Using this formula, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated? Use the following information for Problems 3-60 and 3-61: Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controllers department, has convinced management that overhead costs can be better estimated and controlled if the fixed and variable components of each overhead activity are known. One such activity is receiving raw materials (unloading incoming goods, counting goods, and inspecting goods), which she believes is driven by the number of receiving orders. Ten months of data have been gathered for the receiving activity and are as follows:
The following computer printout was generated, using regression, for use in estimating maintenance costs. Intercept 8300 X Variable 1 37 Multiple R 0.9500 R Square 0.9025 Activity variable machine hours An estimate of maintenance costs at an activity level of 100 machine hours would be:
Current Attempt in Progress The controller of Oriole Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June Total Maintenance Costs $2,860 3,160 3,760 4,660 3,360 5,260 Total Machine Hours 320 370 520 670 520 720
Compute (a) cycle time, (b) value-added time, (c) non-value-added time, and (d) cycle efficiency using the following information for a manufacturer. Process time. 2.10 days Move time. 0.75 days Inspection time. 0.50 days Wait time. 0.15 days
Pharma Hill Company accumulates the following data for the period of six months:Unit Heat expenseJanuary 2400 4,000February 2300 4,300March 2200 4,200April 2000 4,000May 1800 3,800June 1900 3,900Required:a) Separate the variable and fixed elements using high-low method.b) Express this cost behavior in equation formc) Calculate heat expense at 2100 units.
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
Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost Multiple Choice Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: (Round your intermediate calculations to 2 decimal places.) O O Prior Year 17,100 20,100 $ 29,400 $ 34,200 $29,400 per year; $1.701 per machine hour Current Year $2,040 per year; $1.701 per machine hour $2,040 per year; $1.600 per machine hour $29,400 per year; $1.600 per machine hour
Given 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
You are provided the following production information for the month of October 2020 Material A Material B Material C Opening WIP Cost RO R5,622 R4 235 Current Months' Cost R57,885 R66,368 R36,329 Equivalent Units 6,264 units 9.863 units 7.959 units If a FIFO system is used, what is the cost per equivalent unit for Material C?