The Controller of MM Ears 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 |
$2800.00 |
3000 |
February |
$3000.00 |
4000 |
March |
$3600.00 |
6000 |
April |
$5500.00 |
7900 |
May |
$3200.00 |
5000 |
June |
$5000.00 |
8000 |
Answer the following questions about the company.
a) What is the company's variable cost component? $ Answer per
machine hour
b) What is company's fixed cost component? $ Answer
c) The variable and fixed cost component together form the cost equation. Use the resulting cost equation to calculate the company's total expected maintenance cost at the activity level of 5,000 machine hours. $ Answer
MH'S | Cost | |||||
High | 8,000 | 5,000 | ||||
low | 3,000 | 2,800 | ||||
Difference | 5,000 | 2,200 | ||||
a) | Variable cost componend | |||||
2200/5000 | ||||||
0.44 | per machine hour | |||||
b) | Fixed cost component | |||||
5,000 - (8000*.44) | ||||||
1480 | ||||||
c) | cost Equation | |||||
Y = a + bx | ||||||
Y | = | 1,480 | + | .44x | ||
total cost | = | 1480 | + | 2200 | ||
3680 | ||||||
The Controller of MM Ears has collected the following monthly expense data for use in analyzing...
2. The controller of Hall Industries has collected the following
monthly expense data for use in analyzing the cost behavior of
maintenance costs.
total
total
Month
Maintenance Costs
Machine Hours
1
2460
3500
2
3000
4000
3
3600
6000
4
4500
7900
5
3200
5000
6
4620
8000
(a) Determine the fixed- and variable-cost components using the
high-low method.
.................................
500 P18.1A (LO1, 2) The controller of Rather Production has collected the following monthly expense data for analyzing the cost...
The controller of Gutierrez Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs: Month Total Maintenance Costs Total Machine Hours January $2,740 3,000 February 3,150 4,050 March 3,950 6,150 April 4,570 8,200 May 3,290 5,500 June 5,178 8,300 Determine the variable-cost component using the high-low method. (Round answer to 2 decimal places e.g. 12.25.) Variable cost $ per machine hour Determine the fixed cost component using the high-low method. Fixed...
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 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...
he controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,700 230 February 3,350 280 March 4,400 430 April 5,870 620 May 3,700 330 June 6,300 630 (a1) Determine the variable cost component using the high-low method. Variable cost per machine hour $
The controller of Cullumber 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 3,985 January February $3.004 3.454 4,097 4552 March 6,82B 5,121 April May June 3.642 6.076 8,990 5,490 9,105 Determine the variable cost components using the high-low method. (Round answer to 2 decimal placeses. 2250 Variable cost per machine hour $ e Textbook and Media Determine the fixed cost components using the...
The controller of Ayayai 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
$2,880
300
February
3,120
390
March
3,720
540
April
4,620
650
May
3,320
540
June
5,920
700
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 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 $2,550 300 February 2,850 350 March 3,450 500 April 4,350 690 May 3,050 500 June 5,460 700 Incorrect answer iconYour answer is incorrect. 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 $ 7.3 eTextbook and...
The controller of Norton Industries has collected the following
monthly expense data for use in analyzing the cost behavior of
maintenance costs.
Exercise 18-3 The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs Total Maintenance Costs Total Machine Hours Month $2,730 January 350 February 3,030 400 March 3,630 550 April 4,530 540 May 3,230 550 June 5,690 750 Detemine the variable cost components using the high-low method....
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...