1.
Variable cost per unit = (174,000*$0.138) - (116,000*$0.177) / 174,000-116,000
Variable cost per unit = $24,012 - 20,532 / 58,000 = $0.06 per kilometer
Fixed cost = $24,012 - 10,440 (174,000*$0.06) = $13,572 per year
2.
Y = a + b X
Total cost = $13,572 + $0.06 * Number of kilometers driven
3.
Total operating cost = $13,572 + $0.06*145,000 = $22,272.
help plzz Exercise 5A-3 Cost Behavior; High-Low Method [LO5-10] Hoi Chong Transport, Ltd., operates a fleet...
help plzz Exercise 5A-3 Cost Behavior; High-Low Method [LO5-10] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 174,000 kilometers during a year, the average operating cost is 13.8 cents per kilometer. If a truck is driven only 116,000 kilometers during a year, the average operating cost increases to 17.7 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and...
Exercise 5A-3 Cost Behavior; High-Low Method [LO5-10] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 153,000 kilometers during a year, the average operating cost is 12.5 cents per kilometer. If a truck is driven only 102,000 kilometers during a year, the average operating cost increases to 15.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual...
Exercise 5A-3 Cost Behavior; High-Low Method [LO5-10] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 93,000 kilometers during a year, the average operating cost is 9.2 cents per kilometer. If a truck is driven only 62,000 kilometers during a year, the average operating cost increases to 9.9 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual...
help p[lzzz Exercise 5A-3 Cost Behavior; High-Low Method [LO5-10] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 174,000 kilometers during a year, the average operating cost is 13.8 cents per kilometer. If a truck is driven only 116,000 kilometers during a year, the average operating cost increases to 17.7 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and...
Exercise 2A-3 (Algo) Cost Behavior; High-Low Method (LO2-10] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 90,000 kilometers during a year, the average operating cost is 9.1 cents per kilometer. If a truck is driven only 60,000 kilometers during a year, the average operating cost increases to 9.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the...
Exercise 6A-3 Cost Behavior; High-Low Method [LO6-10] Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 59,000 kilometers during a year, the average operating cost is 12.7 cents per kilometer. If a truck is driven only 106,000 kilometers during a year, the average operating cost increases to 15.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual...
Exercise 5A-3 Cost Behavior; High-Low Method (L05-10) Hol Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 168,000 kilometers during a year, the average operating cost is 13.2 cents per kilometer. If a truck is driven only 112,000 kilometers during a year, the average operating cost increases to 16.7 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 141,000 kilometers during a year, the average operating cost is 12.1 cents per kilometer. If a truck is driven only 94,000 kilometers during a year, the average operating cost increases to 14.6 cents per kilometer. Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 141,000...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 162,000 kilometers during a year, the average operating cost is 13.2 cents per kilometer. If a truck is driven only 108,000 kilometers during a year, the average operating cost increases to 16.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet...
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.6 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.3 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet...