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(A)
Variable cost = (highest activity level costs - lowest activity level costs)/(Highest activity level units - lowest activity level units)
= ($30400 - $16900)/(17600 - 8600)
= $1.5 per factory machine hour
(B)
note: fixed costs are the same at any level of activity
at highest activity level
fixed costs = $30400 - (17600 x $1.5)
= $4000
at lowest activity level
fixed costs = $16900 - (8600 x $1.5)
= $4000
Question 2 Moresan Co. gathered the following information on power costs and factory machine usage for...
Question 2 Moresan Co. gathered the following information on power costs and factory machine usage for the last six months: Month January February March April May June Power Cost $24,400 30,400 29,000 22,340 19,900 16,900 Factory Machine Hours 13,900 17,600 16,800 13,200 11,600 8,600 Using the high-low method of analyzing costs, answer the following questions. (a) What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Variable power costs...
Exercise 171 Moresan Co. gathered the following Information on power costs and factory machine usage for the last six months: Month January February March April May June Power Cost $24,400 30,400 29,000 22,340 19,900 16,900 Factory Machine Hours 13,900 17,600 16,800 13,200 11,600 8,600 Using the high-low method of analyzing costs, answer the following questions. What is the estimated variable portion of power costs per factory machine hour? (Round answer to 2 decimal places, e.g. 15.25.) Variable power costs per...
Chapter 19 Problem 1: Moresan Co. gathered the following information on power costs and factory machine usage for the last six months Month January February March April May June Power Cost $24,400 30,400 29,000 22,340 19,900 16,900 Factory Machine Hours 13,900 17,600 16,800 13,200 11,600 8,600 Instructions Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers (a) What is the estimated variable portion of power costs per factory machine hour? (b)...
Practice Assignment Gradebook ORION Downloadable eTextbook ssignment CES Question 20 Coronado Industries has a new product going on the market next year. The following data are projections for production and sales: Variable costs $125000 Fixed costs $450000 ROI Investment $2000000 Sales 100000 units 14% What is the target selling price per unit? $8.55 $7.30 $4.05 $5.75 Question Attem: Study 1 Privacy Policy. I 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc....
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The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rents at $70 a night. Operating costs are as follows: Salaries $5,000 per month Utilities $1,200 per month Depreciation $900 per month Maintenance $1,657 per month Maid service $17 per room Other costs $32 per room Determine the inn’s break-even point in number of rented rooms per month. Break-even point rooms LINK TO TEXT LINK TO TEXT Determine...
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