Homework Answers
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| Kootenay Bicycle |
| Electricity cost is a mixed cost. It means some portion varies with machine hours and some portion remains fix irrespective of the machine hours. |
| Electricity cost can be predicted through high low method or regression method. High low method is always recommended as it is easy to use and gives correct results. |
| High Low method |
| Variable cost= (Highest activity cost- Lowest activity cost)/ (Highest activity units- Lowest activity units) |
| Answer 1 | Event | Machine Hours | Electricity costs |
| Highest activity | 4 | 730.00 | 47,610.00 |
| Lowest activity | 5 | 650.00 | 43,765.00 |
| Change | 80.00 | 3,845.00 | |
| Variable cost per hour | 48.06 | ||
| Fixed cost: | Highest activity cost- (Highest units * Variable cost per unit) | ||
| Fixed cost: | 47610-(730*48.06) | ||
| Fixed cost | 12,526.20 |
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Kootenay Bicycle Company is trying to analyze cost behavior of their electricity costs. They have determined...
Kootenay Bicycle Company is trying to analyze cost behavior of their electricity costs. They have determined...
Kootenay Bicycle Company is trying to analyze cost behavior of their electricity costs. They have determined that machine hours is the best way to predict their electricity costs. The company's cost and machine hours for the past six months are as follows: Machine Hours Electricity Cost 1 720 $45,888.00 2 700 $41,550.00 $46,664.00 3 680 4 730 $47,610.00 un 650 $43,765.00 6 710 $46,825.00 I Discuss with me whether you think the Electricity cost is a fixed, variable or mixed...
1. ker Corporation uses the high-low method to analyze cost behavior. You as controller have determined...
1. ker Corporation uses the high-low method to analyze cost behavior. You as controller have 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 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $8,700 800 February 8,360 720 March 8,950 810 April 9,360 920 May 9,625 950 June...
E6-23 (similar to) Chen Company, which uses the High-Low method to analyze cost behavior, has determined...
E6-23 (similar to) Chen Company, which uses the High-Low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: Month Machine Hours January 1,090 Total Costs $ 3,400 $ 3,760 $ 3,532 February 1,190 March 1,080 April $3,760 1,260 May $ 4,400 1,380 June $ 4,192 1,480 Requirements: Using the High-Low method to predict the total...
Jungemann Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best pr...
Jungemann Company, which uses the high-low method to analyze
cost behavior, has determined that machine hours best predict the
company's total utilities cost. The company's cost and machine
hour usage data for the first six months of the year
follow:
Jungemann Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow:...
The controller of Rather Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.
The controller of Rather Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs. Instructions a. Determine the fixed- and variable-cost components using the high-low method. b. What electricity cost does the cost equation estimate for a level of activity of 500 machine hours? By what amount does this differ from March's observed cost for 500 machine hours? c. What electricity cost does the cost equation estimate for a level of activity of 700 machine...
The controller of Standard Industries has collected the following monthly expense data for analyzing the cost...
The controller of Standard Industries has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Total Electricity Costs Machine Hours January $2,500 300 February 3,000 350 March 3,600 500 April 4,500 690 May 3,200 400 June 4,900 700 July 4,100 650 August 3,800 520 September 5,100 680 October 4,200 630 November 3,300 350 December 6,100 720 Instructions (a) Determine the fixed- and variable-cost components using regression analysis (We recommend the use of Excel.) (b) ...
Coughlin Company, which uses the high-low method to analyze cost behavior, has determined that machine hours...
Coughlin Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: (Click the icon to view the data.) i Data Table Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3....
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...
Tucker Industries uses the high-low method to analyze cost behavior for its manufacturing overhead costs. It...
Tucker Industries uses the high-low method to analyze cost behavior for its manufacturing overhead costs. It has determined that direct labor hours best predict the company's overhead costs. Cost and DL hour usage for the last six months of the year are below. Month DL Hours Total Manufacturing OH Costs $485.000 July 25,000 August $540,000 26,700 September $420 000 20 000 October $416,000 21,900 November $579,000 32.000 December $455,000 20,400 What are total fixed costs? O A. $205,000 OB. $400,000...
Kootenay Bicycle Company is trying to analyze cost behavior of their electricity costs. They have determined that machine hours is the best way to predict their electricity costs. The company's cost and machine hours for the past six months are as follows: Machine Hours Electricity Cost 1 720 $45,888.00 2 700 $41,550.00 $46,664.00 3 680 4 730 $47,610.00 un 650 $43,765.00 6 710 $46,825.00 I Discuss with me whether you think the Electricity cost is a fixed, variable or mixed...
E6-23 (similar to) Chen Company, which uses the High-Low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: Month Machine Hours January 1,090 Total Costs $ 3,400 $ 3,760 $ 3,532 February 1,190 March 1,080 April $3,760 1,260 May $ 4,400 1,380 June $ 4,192 1,480 Requirements: Using the High-Low method to predict the total...
Jungemann Company, which uses the high-low method to analyze
cost behavior, has determined that machine hours best predict the
company's total utilities cost. The company's cost and machine
hour usage data for the first six months of the year
follow:
Jungemann Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow:...
Coughlin Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: (Click the icon to view the data.) i Data Table Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3....
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...
Tucker Industries uses the high-low method to analyze cost behavior for its manufacturing overhead costs. It has determined that direct labor hours best predict the company's overhead costs. Cost and DL hour usage for the last six months of the year are below. Month DL Hours Total Manufacturing OH Costs $485.000 July 25,000 August $540,000 26,700 September $420 000 20 000 October $416,000 21,900 November $579,000 32.000 December $455,000 20,400 What are total fixed costs? O A. $205,000 OB. $400,000...
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