TOI Dwing data relate 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 28 5 7 30 Required: 1- Determine variable and fixed costs using a high- low method of activity and writing the cost equation. 20 2.
Q: The controller of Wildhorse Industries has collected the following monthly expense data for use in…
A: High low method is used as an attempt to segregate the variable and fixed costs using a limited set…
Q: X Corp's total cost at various activity level for 2012 are presented below: Month Units Cost 250.00…
A: Solution 1: Labor cost per unit = P700 / 350 = P2 per unit Total utilities cost of march = P3,800 -…
Q: Given the following cost and activity observations for Smithson Company's utilities, use the…
A: Under high low method total costs at highest and lowest level of activity are considered for…
Q: XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three…
A: The coefficient of determination, or R square explains how much of variation in one variable…
Q: Identifying the Parts of the Cost Formula; Calculating Monthly, Quarterly, and Yearly Costs Using a…
A: Fixed cost remains the same for a particular period and does not vary based on hours or units. While…
Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…
A: X company has a mixed cost of maintenance costs using hours as the activity level. Month Hours…
Q: Required information Exercise 6-5 Changes in Variable Costs, Fixed Costs, Selling Price, and Volume…
A: Please see next step for the solution
Q: method to analyze cost behavior. The company observed that at 20,000 machine hours of activity,…
A: Using high low level method, the cost can be separated as fixed cost and variable cost.
Q: High-Low Method X Company accumulates the following data about maintenance costs, a mixed cost,…
A: This method is used to segregate variable cost and fixed cost. In this method, highest level of…
Q: Observation of the four previous months has identified the following total cost data for production…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months.…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…
A: High low method is a method of cost estimation in which costs at highest and lowest level of…
Q: XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three…
A: Cost driver is any factor which causes a change in the cost of an activity A cost driver is the unit…
Q: High-Low Method During the past year, Gutter Corp., operated within the relevant range of its…
A: Variable cost per unit = ( Highest activity cost - Lowest activity cost )/ (Highest activity -…
Q: Coraline Co. has the following cost and activity data. Month Units Total Cost September 80,000…
A: The High-low method of determining cost variance considers the highest and lowest cost being…
Q: NUBD has computed the following unit costs for the year just ended: Direct material used Direct…
A: Unit cost under variable costing = Direct material used + direct labor + Variable manufacturing…
Q: 1) Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that…
A: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…
Q: The following Information is avallable for a company's maintenance cost over the last seven months.…
A: A high-low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: Required information [The following information applies to the questions displayed below.) Alden…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: Using the highest and lowest levels of activity for the past year, the cost function representing…
A: The cost function of maintenance cost y = 439,000 + 14x Where, P439,000 is the fixed cost P14 is…
Q: Rooney Company's cost and production data for two recent months included the following: March 300…
A:
Q: Q3. Consider the following data for two independent cases. Data refers to the month of November.…
A: Standard costing is the type of costing in which a cost is expected according to which actual…
Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…
A: Formula to calculate variable cost under High low method: Variable cost Per hour = ( Total…
Q: JRM Inc., which has only one product, provided the following data for April: Sales @ P74/unit…
A: Solution 1: Unit product cost under variable costing = DM + DL + Variable factory overhead = P12 +…
Q: Production in units per month 3,000 9,000 16,000 P86,490 35,000 Cost X P23,700 P52,680 P178,260 Cost…
A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…
Q: igh-Low method - Calculation of variable cost per maintenance hour
A:
Q: The following information is available for a company’s maintenance cost over the last seven months.…
A: Difference between Highest and lowest cost=November cost-December cost=$16,200-$7,200=$9,000
Q: per 325 8,310 275 7,200 220 6,550 200 5,760 75 4,960 information from the high- and low-volume…
A: Labor costs refer to the sum total of wages paid by an employer to its employees for the particular…
Q: High-Low Method The manufacturing costs of Barretto Enterprises for three months of the year…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: The controller of Hall Industries has collected the following monthly expense data for use in…
A: A variable cost is a business expense that varies with how much a company produces or sells.…
Q: Donner Company would like to estimate the variable and fixed components of its maintenance costs and…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: Calculate the cost break-even point in hours on a production-time basis for the tabulated data. Item…
A: A break-even point is a point where costs and revenue of the company break even mean they are equal…
Q: Required information [The following information applies to the questions displayed below.] Alden…
A: Calculation of variable cost per unit Change in Cost Cost at high point - cost at low point…
Q: The controller of Sunland Industries has collected the following monthly expense data for use in…
A: Under the high-low method, a difference between the highest and lowest point of activities is taken…
Q: KYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three…
A: The coefficient of determination, or R square explains how much of variation in one variable…
Q: Voltar has collected the following data for recent months Month Miles Driven Total Cost March 41,000…
A: According to the above data The Highest Activity Cost occurs in the month of April i.e. 44234 and…
Q: XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three…
A: Regression analysis is one of the key tools for decision making as part of statistical analysis
Q: Prepare a contribution margin format income statement; calculate breakeven point Presented here is…
A:
Q: D. Prepare an Income statemer according to the varlable costing concept. Gallatin County Motors Inc.…
A: Income statement refers to reporting of the sales revenues as well as operating expenses of the…
Q: O Rako Enterpi which ues the high-w metho determined that elevant nge of activity varies fro machine…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…
A: Variable cost=Highest activity cost-Lowest activity costHighest activity hours-Lowest activity hours
Q: Donner Company would like to estimate the variable and fixed components of its maintenance costs and…
A: Variable expenses are those expenses that change with the change in quantity. Direct materials,…
Q: Given the following cost and activity observations for Smithson Company's utilities, use the…
A: Given that, Highest activity (machine hours) = 29,000 Lowest activity (machine hours) = 20,000…
Q: Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6…
A: Compute the variable cost per unit using the high-low method.
Step by step
Solved in 2 steps
- The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost P1,350 7 P1,590 11 P1,920 15 P2,100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to:The controller of the Blade Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance: (Click to view the information.) Required 1. Estimate the cost function for maintenance. 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. Requirement 1. Estimate the cost function for maintenance. (Round your answers to the nearest cent as needed.) Maintenance costs = Maintenance costs = +( +( X X Requirement 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. the relevant range, not at cost levels the relevant range. If there are no months with zero The cost function in requirement 1 is an estimate of how costs behave machine-hours represented in the maintenance account, data in that account function provides the best available starting point for a straight line that approximates how a cost behaves be used to…Write a linear cost function equation for each of the following conditions. Use y for estimated costsand X for activity of the cost driver. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usagecosts for each day the machinery is in operation.
- Determine fixed costs using the high-low method from the following data: Total Costs Level of Activity P65,000 11,250 P52,000 8,000 P86,000 16,500 a. P45,000 b. P20,000 c. P16,500 d. P9,500Using the least-squares method of analyzing costs, answer the following questions and show computations to support your answers. a. What is the estimated variable portion of maintenance costs per labor hour? B.What is the estimated fixed maintenance cost each month? C.Formulate the regression equation D.If it is estimated that 600 labor hours will be used in July, what is the expected total power cost for July?1. (Give workings for your answer) The following data pertains to activity and utility cost for two recent periods: Activity level (units) 8,000 5,000 Utility cost $8,000 $6,500 Utility cost is a mixed cost with both fixed and variable components. Using the high-lowmethod, the cost formula for utility cost is:A. Y = $1.00 XB. Y = $1.25 XC. Y = $4,000 + $0.50 XD. Y = $1,500 + $1.25 X
- 1. The following data pertains to activity and utility cost for two recent periods:Activity level (units) 8,000 5,000Utility cost $8,000 $6,500Utility cost is a mixed cost with both fixed and variable components. Using the high-lowmethod, the cost formula for utility cost is:A. Y = $1.00 XB. Y = $1.25 XC. Y = $4,000 + $0.50 XD. Y = $1,500 + $1.25 XThe 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:SITUATION2: Interpret the figure below: find (a) Present worth of all additional maintenance cost, (b) Present worth of all cost, (c) Equivalent uniform annual cost (EUAC). Note, EUAC is the sum of all expenses such as first cost, operation cost and other expenses. 0 12 3 4 5 6 7 8 9 10 11 12 Y ✓ 1.5 1.5 1.5 1.5 1,5 1.5 1.5 1.5 1.5.1,5 1.5 1.5 Initial cost: P20M Annual maintenance: P1.5M www 25 1,5 Additional Maintenance every 5 years: P3M Cost of money: 8.0%
- Which of the following types of cost is shown in this table of cost data? Cost per Unit $6,000 3,000 2,000 1,500 b. fixed cost Number of Units C. variable cost d. period cost 1 A WN 2 3 4The Perize Corporation used regression analysis to predict the annual cost of indirect materials. The results were as follows: Indirect Materials Cost Explained by Units Produced Constant $15,685 Standard error of Y estimate $3,500 r2 0.7832 Number of observations 20 X coefficient(s) 10.25 Standard error of coefficient(s) 2.1876 What is the cost function? Select one: a. Y = $19,185 + $4.48X b. Y = $15,685 + $10.25X c. Y = $12,285 + $10.25X d. Y = $3,500 + $5.15XCLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Electricity Cost Direct Labor January April July October P6,750 7,500 8,500 7,250 Hours 1,500 1,700 2,000 1,600 Required: Determine the following using the high-low method. a. Variable cost per hour b. Fixed Cost Cost equation/function d. How much is the total cost with 2,200 labor hours? C.