High-Low Cost Estimation Assume the local YRC Worldwilde delivery service hub has the following information available...
High-Low Cost Estimation
Assume the local YRC Worldwilde delivery service hub has the
following information available about fleet miles and operating
costs:
| Year | Miles | Operating Costs |
|---|---|---|
| 2017 | 556,000 | $175,600 |
| 2018 | 684,000 | 214,000 |
Use the high-low method to develop a cost-estimating equation for
total annual operating costs. (Let X = annual fleet miles.)
Total annual costs = Answer + Answer * X
Homework Answers
| 1) | Variable portion of the cost = (Total cost at highest level of activity-Total cost at lowest level activity)/(Highest activity-Lowest activity) | |
| = (214000-175600)/(684000-556000) = | $ 0.30 | |
| 2) | Fixed portion of the cost = 214000-684000*0.30 = | $ 8,800 |
| 3) | Total annual costs = $8,800 + $0.30*X | |
| where X = annual fleet miles |
Add Answer to:
High-Low Cost Estimation
Assume the local YRC Worldwilde delivery service hub has the
following information available...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 82,700 1,500 50,375 4,400 120,700 2,800 81,900 2,300 69,775 1,200 43,100 2,000 62,500 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. x + $ (b.) Plot the data on a scatter diagram. Using the information from representative...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 82,700 1,500 50,375 4,400 120,700 2,800 2,300 1,200 2,000 81,900 69,775 43,100 62,500 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. = $ 14,000 ~ +$ 24.25 ♥ (b.) Plot the data on a scatter diagram. Using...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order processing costs. Month Sales Orders Order Processing Costs 1 3.000 599 200 2 1500 60.450 3 144 2.800 9020 5 83.730 6 1.200 51.720 2000 75.000 100 Required (a.) Use information from the high- and low-volume months to develop a cost estimating equation for monthly order processing costs. 29.15 16.800 A Ib. Plot the data on...
Exercise 2-12 Cost Behavior; High-Low Method [L02-3, LO2-4] Speedy Parcel Service operates a fleet of delivery...
Exercise 2-12 Cost Behavior; High-Low Method [L02-3, LO2-4] Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company's cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. If a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. Required: 1.& 2.Using the high-low method, estimate...
Exercise 2-12 Cost Behavior; High-Low Method [LO2-3, LO2-4) Speedy Parcel Service operates a fleet of delivery...
Exercise 2-12 Cost Behavior; High-Low Method [LO2-3, LO2-4) Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company's cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. If a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. Required: 1.& 2. Using the high-low method,...
Developing and Using a Predetermined Overhead Rate: High-Low Cost Estimation For years, Mattoon Components Company has...
Developing and Using a Predetermined Overhead Rate: High-Low Cost Estimation For years, Mattoon Components Company has used an actual plantwide overhead rate and based its prices on cost plus a markup of 30 percent. Recently the marketing manager, Holly Adams, and the production manager, Sue Walsh, confronted the controller with a common problem. The marketing manager expressed a concern that Mattoon's prices seem to vary widely throughout the year. According to Adams, "It seems irrational to charge higher prices when...
QUESTION 10 Really Fast Delivery Services has collected the following information about operating expenditures for its...
QUESTION 10 Really Fast Delivery Services has collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating costs 2013 55,000 $195,000 2014 70,000 $210,000 2015 50,000 $180,000 2016 65,000 $205,000 2017 85,000 $225,500 Using the high-low method, what is the cost estimate for fixed costs for 2018? $115,000 $100,000 $115,500 $114,500
QUESTION 8 Really Fast Delivery Services has collected the following information about operating expenditures for its...
QUESTION 8 Really Fast Delivery Services has collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2013 55,000 $195,000 2014 70,000 $210,000 2015 50,000 $180,000 2016 65,000 $205,000 2017 85,000 $225,500 Using the high-low method, what is the cost estimate for variable costs for 2018? $1.30 $1.60 $1.29 $2.00
Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Papa John's restaurant has the...
Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales: Monthly sales in units 5.000 8.000 10.000 Cost of food sold $10,000 $16,000 520,000 Wages and fringe benefits 4200 4.320 4,400 Fees paid delivery help 1.100 1.760 2200 Rent on building 1.100 1.100 1.100 Depreciation on equipment 900 900 900 Utilities 800 920 1,000 Supplies (soap, floor wax, etc.) 250 340 400 Administrative...
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department...
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month April May June Miles Mowed Labor and Cleaned Costs 350 $9,600 300 8,800 400 10,400 250 8,000 375 10,000...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 82,700 1,500 50,375 4,400 120,700 2,800 81,900 2,300 69,775 1,200 43,100 2,000 62,500 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. x + $ (b.) Plot the data on a scatter diagram. Using the information from representative...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order-processing costs. Month Sales Orders Order-Processing Costs 3,000 $ 82,700 1,500 50,375 4,400 120,700 2,800 2,300 1,200 2,000 81,900 69,775 43,100 62,500 Required (a.) Use information from the high- and low-volume months to develop a cost-estimating equation for monthly order-processing costs. = $ 14,000 ~ +$ 24.25 ♥ (b.) Plot the data on a scatter diagram. Using...
Scatter Diagrams and High-Low Cost Estimation Assume the local Pearle Vision has the following information on the number of sales orders received and order processing costs. Month Sales Orders Order Processing Costs 1 3.000 599 200 2 1500 60.450 3 144 2.800 9020 5 83.730 6 1.200 51.720 2000 75.000 100 Required (a.) Use information from the high- and low-volume months to develop a cost estimating equation for monthly order processing costs. 29.15 16.800 A Ib. Plot the data on...
Exercise 2-12 Cost Behavior; High-Low Method [L02-3, LO2-4] Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company's cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. If a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. Required: 1.& 2.Using the high-low method, estimate...
Exercise 2-12 Cost Behavior; High-Low Method [LO2-3, LO2-4) Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company's cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. If a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. Required: 1.& 2. Using the high-low method,...
QUESTION 10 Really Fast Delivery Services has collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating costs 2013 55,000 $195,000 2014 70,000 $210,000 2015 50,000 $180,000 2016 65,000 $205,000 2017 85,000 $225,500 Using the high-low method, what is the cost estimate for fixed costs for 2018? $115,000 $100,000 $115,500 $114,500
QUESTION 8 Really Fast Delivery Services has collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2013 55,000 $195,000 2014 70,000 $210,000 2015 50,000 $180,000 2016 65,000 $205,000 2017 85,000 $225,500 Using the high-low method, what is the cost estimate for variable costs for 2018? $1.30 $1.60 $1.29 $2.00
Cost Behavior Analysis in a Restaurant: High-Low Cost Estimation Assume a Papa John's restaurant has the following information available regarding costs at representative levels of monthly sales: Monthly sales in units 5.000 8.000 10.000 Cost of food sold $10,000 $16,000 520,000 Wages and fringe benefits 4200 4.320 4,400 Fees paid delivery help 1.100 1.760 2200 Rent on building 1.100 1.100 1.100 Depreciation on equipment 900 900 900 Utilities 800 920 1,000 Supplies (soap, floor wax, etc.) 250 340 400 Administrative...
Scatter Diagrams and High-Low Cost Estimation From April 1 through October 31, Coles County Highway Department hires temporary employees to mow and clean the right-of-way along county roads. The County Road Commissioner has asked you to help her in determining the variable labor cost of mowing and cleaning a mile of road. The following information is available regarding current-year operations: Month April May June Miles Mowed Labor and Cleaned Costs 350 $9,600 300 8,800 400 10,400 250 8,000 375 10,000...
Most questions answered within 3 hours.
-
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 1 hour ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 1 hour ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 1 hour ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 1 hour ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 2 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 2 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 5 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 6 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 6 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 6 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 6 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 7 hours ago