True or False: One disadvantage of the high-low method is the highest and lowest points may...
True or False: One disadvantage of the high-low method is the highest and lowest points may NOT be representative of normal operating activities.
True or False: The relevant range represents those activity levels for which valid cost relationships have been observed.
True or False: In general, accounting records accumulate cost information according to its behavior (i.e., variable and fixed).
Homework Answers
1. True [ The highest and lowest are not necessarily indicative of the level of activity]
2. True
3. False [ Only one set of combined costs is maintained]
Add Answer to:
True or False: One disadvantage of the high-low method is the
highest and lowest points may...
High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct...
High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $336,000 at the 58,000-hour level and $304,000 at the 42,000-hour level. Compute the maintenance cost formula. x direct labor hours) Total cost = $ 640,000 X + ($ 2 What cost might we expect at an operating level of 52,000 direct labor hours?
The high-low method basically fits a line through the highest and lowest points. O A. variable...
The high-low method basically fits a line through the highest and lowest points. O A. variable cost OB. volume O c. fixed cost O D. none of the above
15) Weakness of the high-low method include all of the following EXCEPT: a) only two observations...
15) Weakness of the high-low method include all of the following EXCEPT: a) only two observations are used to develop the cost function. b) the high and low activity levels may not be representative. c) the method does not detect if the cost behavior is nonlinear. d) the method is relatively complex and difficult to apply. Answer: _(3 points)
Calculate High-Low Method, Cost Formulas During the past year, the high and low use of three...
Calculate High-Low Method, Cost Formulas During the past year, the high and low use of three different resources for curred in on. The resources are airplane erection for m ance. There w the river. The total of the the r e and theredumber of hours are and h o Resource Airplane Flight Hours Total Cost Airplane depreciation: High 44,000 25,000 $18.400,000 $ 18,400,000 High 445 .000 44,000 28.000 283,752 000 High 44,000 16,200,000 LOW 28.000 12,080,000 Required: stores 1. What...
Question 1 Incorrect Mark 0.00 out of 3.00 P Flag question High-Low Method The highest and...
Question 1 Incorrect Mark 0.00 out of 3.00 P Flag question High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $420,000 at the 58,000-hour level and $380,000 at the 42,000-hour level. Compute the maintenance cost formula Total cost = $ 412,500 x +($ 3.75 x x direct labor hours) What cost might we expect at an operating level of 52,000 direct labor...
High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities...
High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: Resource Number of Moves Total Cost Forklift...
High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities...
High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: Resource Number of Moves Total Cost Forklift...
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours...
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine hours, with the following data being available for the first six months of the year: Month, Utilities Machine Hours January $ 9,200 850 February 8,860 770 March 9,450 860 April 9,860 970 May 10,240 1,000 June 9,650 950...
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours...
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine hours, with the following data being available for the first six months of the year: Machine Month Utilities Hours January February $10,300 960 9,960 880 March 10,550 970 April 10,960 1,080 May 11,087 1,110 June 10,750 1,060 Using...
Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three...
Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B 5,000 units 7,500 units Type C $4 $3 Total $17 $13 $6 The cost formula that expresses the behavior of Yang's total cost is:...
High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $336,000 at the 58,000-hour level and $304,000 at the 42,000-hour level. Compute the maintenance cost formula. x direct labor hours) Total cost = $ 640,000 X + ($ 2 What cost might we expect at an operating level of 52,000 direct labor hours?
The high-low method basically fits a line through the highest and lowest points. O A. variable cost OB. volume O c. fixed cost O D. none of the above
15) Weakness of the high-low method include all of the following EXCEPT: a) only two observations are used to develop the cost function. b) the high and low activity levels may not be representative. c) the method does not detect if the cost behavior is nonlinear. d) the method is relatively complex and difficult to apply. Answer: _(3 points)
Calculate High-Low Method, Cost Formulas During the past year, the high and low use of three different resources for curred in on. The resources are airplane erection for m ance. There w the river. The total of the the r e and theredumber of hours are and h o Resource Airplane Flight Hours Total Cost Airplane depreciation: High 44,000 25,000 $18.400,000 $ 18,400,000 High 445 .000 44,000 28.000 283,752 000 High 44,000 16,200,000 LOW 28.000 12,080,000 Required: stores 1. What...
Question 1 Incorrect Mark 0.00 out of 3.00 P Flag question High-Low Method The highest and lowest levels of activity for the Felton Company were 58,000 direct labor hours and 42,000 direct labor hours, respectively. Maintenance costs were $420,000 at the 58,000-hour level and $380,000 at the 42,000-hour level. Compute the maintenance cost formula Total cost = $ 412,500 x +($ 3.75 x x direct labor hours) What cost might we expect at an operating level of 52,000 direct labor...
High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: Resource Number of Moves Total Cost Forklift...
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine hours, with the following data being available for the first six months of the year: Machine Month Utilities Hours January February $10,300 960 9,960 880 March 10,550 970 April 10,960 1,080 May 11,087 1,110 June 10,750 1,060 Using...
Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B 5,000 units 7,500 units Type C $4 $3 Total $17 $13 $6 The cost formula that expresses the behavior of Yang's total cost is:...
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