The controller of Hall Industries has collected the following
monthly expense data for use in analyzing the cost behavior of
maintenance costs.
Month |
Total |
Total |
|||
January | $3,105 | 4,116 | |||
February | 3,528 | 4,704 | |||
March | 4,234 | 7,056 | |||
April | 5,292 | 9,290 | |||
May | 3,763 | 5,880 | |||
June | 5,433 | 9,408 |
Determine the fixed cost components using the high-low method.
(Round answer to 0 decimal places e.g.
2,520.)
Fixed costs |
$ |
Ans. | High low method: This method is based on the highest level of cost and activity & the lowest level of cost and activity. | |||
We assumed that the highest units lead to highest cost and lowest units lead to lowest cost. | ||||
For the calculation of fixed cost component of total cost, we need to find out the variable cost per unit | ||||
firstly. | ||||
Variable cost per unit = (Highest cost - Lowest cost) / (Highest machine hours - Lowest machine hours) | ||||
($5,433 - $3,105) / (9,408 - 4,116) | ||||
$2,328 / 5,292 | ||||
$0.4499 per unit | ||||
Fixed cost = Total cost - (Variable cost per unit * Activity level) | ||||
Fixed cost can be calculated on the base of highest and lowest units. | ||||
Highest units | Lowest units | |||
$5,433 - ($0.4499 * 9,408) | $3,105 - ($0.4499 * 4,116) | |||
$5,433 - $4,139 | $3,105 - $1,811 | |||
$1,294 | $1,294 | |||
So the fixed cost is = $1,294. | ||||
The controller of Hall Industries has collected the following monthly expense data for use in analyzing...
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $3,105 4,116 February 3,528 4,704 March 4,234 7,056 April 5,292 9,290 May 3,763 5,880 June 5,433 9,408 (a1) Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour $ eTextbook and Media
The controller of Hall Industries has collected the following
monthly expense data for use in analyzing the cost behavior of
maintenance costs.
Month
Total
Maintenance Costs
Total
Machine Hours
January
$ 3,041
4,032
February
3,456
4,608
March
4,147
6,912
April
5,184
9,101
May
3,686
5,760
June
5,322
9,216
Determine the variable-cost
components using the high-low method. (Round variable
cost to 2 decimal places e.g. 12.25.)
Variable cost per machine
hour
$
LINK TO TEXT
LINK TO TEXT
Determine the fixed...
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $3,041 4,032 February 3,456 4,608 March 4,147 6,912 April 5,184 9,101 May 3,686 5,760 June 5,322 9,216 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour $ eTextbook and Media Determine the fixed cost components...
The controller of Hall Industries has collected the following
monthly expense data for use in analyzing the cost behavior of
maintenance costs.
Month
Total
Maintenance Costs
Total
Machine Hours
January
$3,102
4,112
February
3,525
4,700
March
4,230
7,050
April
5,287
9,282
May
3,760
5,875
June
5,428
9,400
Your answer is correct.
Determine the variable-cost components using the high-low method.
(Round variable cost to 2 decimal places e.g.
12.25.)
Variable cost per machine hour
$
LINK TO TEXT
LINK TO TEXT...
The controller of Hall Industries has collected the following
monthly expense data for use in analyzing the cost behavior of
maintenance costs.
Month
Total
Maintenance Costs
Total
Machine Hours
January
$6,770
6,300
February
7,720
7,200
March
10,680
10,800
April
13,822
14,220
May
9,100
9,000
June
14,060
14,400
(a1)
Your answer is correct.
Determine the variable-cost components using the high-low method.
(Round variable cost to 2 decimal places e.g.
12.25.)
Variable cost per machine hour
$
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The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $12,405 6,650 February 14,160 7,600 March 20,340 11,400 April 26,541 15,010 May 17,150 9,500 June 26,940 15,200 A) Fixed Costs$ ?
The controller of Furgee Industries
has collected the following monthly expense data for use in
analyzing the cost behavior of maintenance costs.
Month
Total Maintenance Costs
Total Machine Hours
January
$2,670
330
February
3,170
480
March
3,770
630
April
4,670
560
May
3,370
530
June
5,010
730
(a)
Your answer is correct.
Determine the variable cost
components using the high-low method. (Round variable cost to 3 decimal places e.g.
12.250.)
Variable cost
per machine hour
$
(b)
Your answer is...
The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,630 340 February 2,930 390 March 3,530 540 April 4,430 650 May 3,130 540 June 5,550 740 Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Total fixed costs $
The controller of Crane Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Month January February March April May June $2,748 3,123 3,748 4,234 3,331 4,620 Total Machine Hours 3,645 4,164 6,246 8,224 5,205 8,325 Determine the variable-cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hours LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Determine the fixed...
Exercise 19-5 The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Month Maintenance costs Janpary February March April May June $3,123 3,549 4,259 5,323 3,786 5,465 Total Machine Hours 4,140 4,732 7,098 9,346 5,915 9,464 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places .g. 12.25.) Variable cost per machine hour LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE...