Homework Answers
B. Volume
The High-Low Method is used to separate Fixed Cost and Variable Cost. As per the data Provided Highest Volume and Lowest volume are considered and the total cost against both volume are used here to arrive at the Variable and fixed cost.
It helps in creating cost equation so any other volume cost can be calculated using the cost equation
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The high-low method basically fits a line through the highest and lowest points. O A. variable...
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).
ACC702 pplementary Exercises - REVISION Costing using the High-Low Method As a new manager ew manager...
ACC702 pplementary Exercises - REVISION Costing using the High-Low Method As a new manager ew manager at a security company, you are trying to determine the cost behaviour typical at the company. You have reviewed the past year's costs and the time spent (measured in hours) for the past year on a month by month basis. You have found from the monthly figures that costs appear 'uniform and regular based on the time spent on each job. The month with...
High-Low Methed Diamond Inc, has decided to use the high-low method to estimate the total cost...
High-Low Methed Diamond Inc, has decided to use the high-low method to estimate the total cost and the fixed and variable cost components af the total cost. The dats for various levels o production are as follows: Units Produced 12,000 15,000 21,000 Total Costs $424,000 496,000 640,000 a. Determine the variable cost per unit and the total fixed cost Variable cost (Round to two decimal places.) Total fixed cost b. Based on part (a), estimate the total cost for 17,000...
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?
Level of Activity Total Cost Units of Activity Highest $28,000 15,000 Lowest $22,000 10,000 Difference $6,000...
Level of Activity Total Cost Units of Activity Highest $28,000 15,000 Lowest $22,000 10,000 Difference $6,000 5,000 16. From the table above, use high & low method to determine the total fixed and variable cost per unit.
High-Low Method Apply the high-low method of cost analysis to the three cost data groups shown...
High-Low Method Apply the high-low method of cost analysis to the three cost data groups shown below. Volume (applicable to each group) Group A Costs Group B Costs Group C Costs 2,000 $5,200 $2,000 $4,800 12,000 25,200 12,000 4,800 16,000 33,200 16,000 4,800 20,000 41,200 20,000 4,800 What cost behavior patterns are apparent? Express each as a cost formula: Total cost = Fixed costs + (Variable cost x Volume). Group Fixed costs + (Variable cost x Volume) A Answer +...
Lark, which uses the high-low method, had total costs of $30,490 at its lowest level of...
Lark, which uses the high-low method, had total costs of $30,490 at its lowest level of activity when 10,500 units were sold. When, at its highest level of activity, sales equaled 16,700 units, total costs were $39,790. Lark would estimate fixed costs as: 0 $9,300 O $54,040 $14,740 O $68,080
Question 15 2 pts Which of the following approaches for estimating fixed and variable costs using...
Question 15 2 pts Which of the following approaches for estimating fixed and variable costs using historical information fits a straight line to a set of data points? Scattergraph method and regression analysis Scattergraph method and account analysis High-low method and account analysis Scattergraph method and high-low method None of the answer choices is correct. Question 16 2 pts All of the following are steps of the high-low method except: stating the results in equation form Y=f+ vX. calculating the...
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...
eBook Show Me How Calculator Print item High-Low Method The manufacturing costs of Gregory Industries for three mon...
eBook Show Me How Calculator Print item High-Low Method The manufacturing costs of Gregory Industries for three months of the year are provided below. Total Costs Production January $319,680 2,220 units February 432,990 4,400 March 497,280 5.920 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar a. Variable cost per unit b. Total fixed cost Check My Work a. Divide the difference between the...
ACC702 pplementary Exercises - REVISION Costing using the High-Low Method As a new manager ew manager at a security company, you are trying to determine the cost behaviour typical at the company. You have reviewed the past year's costs and the time spent (measured in hours) for the past year on a month by month basis. You have found from the monthly figures that costs appear 'uniform and regular based on the time spent on each job. The month with...
High-Low Methed Diamond Inc, has decided to use the high-low method to estimate the total cost and the fixed and variable cost components af the total cost. The dats for various levels o production are as follows: Units Produced 12,000 15,000 21,000 Total Costs $424,000 496,000 640,000 a. Determine the variable cost per unit and the total fixed cost Variable cost (Round to two decimal places.) Total fixed cost b. Based on part (a), estimate the total cost for 17,000...
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?
Lark, which uses the high-low method, had total costs of $30,490 at its lowest level of activity when 10,500 units were sold. When, at its highest level of activity, sales equaled 16,700 units, total costs were $39,790. Lark would estimate fixed costs as: 0 $9,300 O $54,040 $14,740 O $68,080
Question 15 2 pts Which of the following approaches for estimating fixed and variable costs using historical information fits a straight line to a set of data points? Scattergraph method and regression analysis Scattergraph method and account analysis High-low method and account analysis Scattergraph method and high-low method None of the answer choices is correct. Question 16 2 pts All of the following are steps of the high-low method except: stating the results in equation form Y=f+ vX. calculating the...
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...
eBook Show Me How Calculator Print item High-Low Method The manufacturing costs of Gregory Industries for three months of the year are provided below. Total Costs Production January $319,680 2,220 units February 432,990 4,400 March 497,280 5.920 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar a. Variable cost per unit b. Total fixed cost Check My Work a. Divide the difference between the...
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