Homework Answers
Using high low method, variable cost per patient day = (Cost at high level – cost at low level)/Difference in number of patient days
= (10,400-9,200)/(3500-2500)
= $1.2 per patient day
Fixed cost = Total cost – variable cost
= 10,400 – 3500*1.2
= $6,200
Hence, cost at 2650 patient days = 6200 + 1.2*2650
= $9,380
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Maintenance Cost Assume a company provided the following information: Patient- Days High activity level 3,500 (September)...
Multiple Choice Question 67 Sunland Company’s high and low level of activity last year was 51000...
Multiple Choice Question 67
Sunland Company’s high and low level of activity last year was
51000 units of product produced in May and 12000 units produced in
November. Machine maintenance costs were $161800 in May and $52600
in November. Using the high-low method, determine an estimate of
total maintenance cost for a month in which production is expected
to be 36000 units.
$142800
$115050
$119800
$136050
61) Assume that a company’s planned level of activity was 3,500 units and its actual level...
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Crane Company’s high and low level of activity last year was 70000 units of product produced...
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The following information is available for a company's maintenance cost over the last seven months. Maintenance...
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What is Dugan's variable cost component for maintenance costs? $ _____ per machine hour b) What is Dugan's fixed cost component for maintenance costs? $ c) What are the total expected maintenance cost when the activity level is 450 machine hours? $
Dugan Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs:MonthTotal Maintenance CostsTotal Machine HoursJanuary$ 5,000400February$ 6,000500March$ 7,200700April$ 9,600900May$ 6,400600June$ 9,800890Use the high-low method to answer the following questions about Dugan Industries.Round your answers to two decimal places.a) What is Dugan's variable cost component for maintenance costs? $ _____ per machine hourb) What is Dugan's fixed cost component for maintenance costs? $ c) What are the total expected maintenance cost when the activity...
The following information is available for a company’s maintenance cost over the last seven months. Month...
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P 6A - B High-Low Analysis and Cost Behavior Broccoli Company's total overhead costs vary considerably,...
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High-Low Analysis and Cost Behavior Broccoli Company's total overhead costs vary considerably, from month to month,...
High-Low Analysis and Cost Behavior Broccoli Company's total overhead costs vary considerably, from month to month, based on direct labor hours. P6A - B Month August September October November December Labor Hours 3,000 3,400 2,000 2,800 3,600 Total Overhead $234,000 249,200 196,000 226,400 256,800 Their overhead costs consist of indirect labor, supervisor's salary and maintenance. A breakdown of these costs, for the month of October (their low month of activity), follows. Indirect labor (V) Supervisor's salary (F) Maintenance (M) Total...
Multiple Choice Question 67
Sunland Company’s high and low level of activity last year was
51000 units of product produced in May and 12000 units produced in
November. Machine maintenance costs were $161800 in May and $52600
in November. Using the high-low method, determine an estimate of
total maintenance cost for a month in which production is expected
to be 36000 units.
$142800
$115050
$119800
$136050
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P 6A - B High-Low Analysis and Cost Behavior Broccoli Company's total overhead costs vary considerably, from month to month, based on direct labor hours. Month August September October November December Labor Hours 3,000 3,400 2,000 2,800 3,600 Total Overhead $234,000 249,200 196,000 226,400 256,800 Their overhead costs consist of indirect labor, supervisor's salary and maintenance. A breakdown of these costs, for the month of October (their low month of activity), follows. Indirect labor (V) Supervisor's salary (F) Maintenance (M)...
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