2. Basil Corporation has three costs: A, which is variable; B, which is fixed; and C, which is semi-variable. The company, which uses the high-low method, extracted the following data from its accounting records: • At 180,000 hours of activity, Cost A totaled P2,610,000. • At 140,000 hours, the low point during the period, Cost C totaled P1,498,000; at 200,000 hours, the high point, Cost C’s fixed portion amounted to P1.75 per hour. • At 160,000 hours of activity, the sum of Costs A, B, and C amounted to P8,162,000. Required: A. Compute the variable portion (total) of Cost C at 140,000 hours of activity. B. Compute Cost C (total) at 160,000 hours of activity. C. Compute Cost B (total) at 160,000 hours of activity.

2. Basil Corporation has three costs: A, which is variable; B, which is fixed; and C, which is semi-variable. The company, which uses the high-low method, extracted the following data from its accounting records: • At 180,000 hours of activity, Cost A totaled P2,610,000. • At 140,000 hours, the low point during the period, Cost C totaled P1,498,000; at 200,000 hours, the high point, Cost C’s fixed portion amounted to P1.75 per hour. • At 160,000 hours of activity, the sum of Costs A, B, and C amounted to P8,162,000. Required: A. Compute the variable portion (total) of Cost C at 140,000 hours of activity. B. Compute Cost C (total) at 160,000 hours of activity. C. Compute Cost B (total) at 160,000 hours of activity.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 11MCQ: Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett...

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