Question

Question Help E6-34A (similar to) Meyer Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's totale s cost. The company's cost and machine hour usage data fort first six months of the year follow (Click the loon to view the data) Requirements Using the high-low method, answer the following questions 1. What is the variable its cost per machine hour? 2. What is the red cost of its each month? 3. Meyer Company uses 1.270 machine hours in a month, what will its total costs be? 1 Data Table Requirement 1. What is the variable utilities cost per machine hour? Month Total Cost Let's begin by determining the formula Pat is used to calculate the variable cont (slope) Machine Hours - Variable cost (slope) January February March . $ $ ..$ 3.470 3.740 1.000 1,160 Change in cost Change in volume Highest cost Highest volume Lowest cost Lowest volume Total operating cost Total variable cost -- $ .$ $ 3,385 3.780 4,300 3,985 1,390 1.470 Print Done

Answer 1

Using High - low points method @ Varible Cost solpe - Change in Cost Change in Volume - Highest Cost - least Cost highest Cost - least Cost volume Volume 4300 - 3385 1390 hus - 1070 kr = 915 - 2.86 per Machine horus 320 - Fixed Cost = Total Cost - vaible Cast . 4300 - 1390 * 2786 = 4300 - 3975-40 = 324.60 @ highest point no 325 Similary - same Card for comest point = 3185 - 1070 * 286 = 3385 - 3060-2 CS Scanned with 324.60 @ lowest pruit = 325 CamScanner

© if Company Uses 1270 machine hours; 1 Total Cost = Fried Cost + Varible Cost = 325 + 1270 * 2686 = 325+ 3632-20 CS Scannbu Kota) Cost = 3957-201 CamScanner