Answer to Requirement 1:
Highest Activity:
Total cost = $6,000
Cavities filled = 700
Lowest Activity:
Total cost = $3,200
Cavities filled = 300
Variable cost per cavity filled = (Total cost at highest
activity - Total cost at lowest activity) / (Cavities filled at
highest activity - Cavities filled at lowest activity)
Variable cost per cavity filled = ($6,000 - $3,200) / (700 -
300)
Variable cost per cavity filled = $2,800 / 400
Variable cost per cavity filled = $7.00
Fixed costs = Total cost at highest activity - Variable cost per
cavity filled * Cavities filled at highest activity
Fixed costs = $6,000 - $7.00 * 700
Fixed costs = $6,000 - $4,900
Fixed costs = $1,100
Answer to Requirement 2:
Total cost = Variable cost per cavity filled * Cavities filled
at highest activity + Fixed costs
Total cost = $7.00 * 500 + $1,100
Total cost = $3,500 + $1,100
Total cost = $4,600
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Number of Cavities Total Month Filled Cost January 625 $5,600 February 700 6,000 March 500 4,500 April 425 4,100 May 450 4,500 June 300 3,200 July 375 3,500 August 550 4,900 September 575 5,400 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month January February March April Number of Cavities Filled Total Cost 450 $5,250 575 6,250 700 6,500 300 5,300 500 5,950 350 5,300 600 5,600 675 6,500 425 5,200 May June July August September Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Number of Cavities Filled 575 625 700 600 Month January February March April May June July August September Total Cost $6,350 6,250 6.400 6,250 6,150 5,400 5,800 5,000 5,400 525 375 475 350 400 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities, Mountain has recorded the following for the past nine months: Total Cost $5,200 6,250 Number of Cavities Month Filled January 400 February 650 March 575 April 500 300 525 325 August 425 September 625 May June July 6,200 5,900 5,200 6,000 5,200 5,500 6,280 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month Number of Cavities Filled Total Cost January 350 $5,200 February 475 5,750 March 450 5,600 April 425 5,550 May 625 6,050 June 525 6,100 July 500 5,700 August 650 6,100 September 375 5,250 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate...
C Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month January February March April Number of Cavities Filled 400 650 575 500 300 525 325 425 625 May Total Cost $5,200 6,250 6,200 5,900 5,200 6,000 5,200 5,500 6,200 June July August September Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates,...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month January February March April May June July August September Number of Cavities Filled Total Cost 650 $6,200 500 5,750 625 5,550 425 5,550 600 5,850 450 5, 150 575 6,150 700 6,100 350 5,050 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates,...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months Month January February March April May June Jul August September Number of Cavities Filled 475 575 350 675 500 400 625 650 450 Total Cost $5,750 6,250 5,200 6,500 5,650 5,250 6,300 6,000 5,450 Required 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month January February March April May June July August September Number of Cavities Filled 400 500 675 525 700 425 600 300 450 Total Cost $5,250 5,850 6,500 5,650 5,900 5,800 5,750 5,400 5,250 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate...
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Number of Cavities Filled 350 425 400 Month January February March April May June July August September 600 700 500 Total Cost $5,050 5,500 5,300 6,300 6,600 5,850 6,150 6,100 5,000 550 525 300 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2...