18. The following information is available for electricity costs for the last six months of theyear:MonthVolumeCostsJuly2,8004.400August5,60010,800September6,40011,400October3.5007,800November2,4004,800December4,2008,100Using high-low method, What is the prediction equation?OY= 100 +3.02 XOY = 200 + 2.83 XOY= 420 + 1.65 Xnone of thc above

High low method is a method of cost estimation in which variable cost per unit and total fixed costs…

Answered: 18. The following information is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Hospital La Salud forthe following data on electricity costs and the number of patients per month of the last year for you to develop a cost function. Electricity costs $5,500 5,800 Patients 1,836 2,100 2,914 1,258 1,025 1,416 2,965 2,692 1,038 Months January Feb 6,200 4,325 4,025 4,445 6,500 5,890 3,900 3,700 3,990 4,998 Sea April May Jun Jul Aug Setp Oct 950 Nov 1,100 Dec 1,564 Requirements: 1. Using the High Low Method determine the FIXED COST AND VARIABLE COST 2. EXPRESS THE COST FUNCTION SUPPOSE FOR THE FIRST TRIMESTRE OF THE ANUS, YOU HAVE PROJECTED THE FOLLOWING NUMBERS OF PATIENTS: January 2,985/ Feb 3,250/ March 4,950 Present the total cost for each projected month. 3. 4. Present the above using the DATA ANALYSIS TOOL in EXEL
Computing Average Unit Costs The total monthly operating costs of Chili To Go are:$12,000 + $0.50X where X = servings of chili Determine the average cost per serving at each of the following monthly volumes: 100; 1,000; 5,000; and 10,000. Round answers to one decimal place. Volume Average Unit Cost 100 1,000 5,000 10,000 Determine the monthly volume at which the average cost per serving is $0.70.
Vala
PROVIDE Answer with calculation
Deep South Glass Company is exploring different prediction models that can be used to forecast machine maintenance costs. One independent variable under consideration is machine hours. Following are matching observations on machine maintenance costs and machine hours for the past six months: Month Machine hours Machine Maintenance costs 1 300 $20,000 400 $24,000 3 240 $17,000 4 370 $22,000 5 200 $13,000 6 225 $14,000 In a high-low model, which months' observations would be used to compute the model's parameters? 4 and 5 1 and 6 2 and 6 O 2 and 5
The following data pertain to activity and utilities costs for two recent years: Activity Level in Units Utilities Cost Multiple Choice 5075 per unit $1.50 per unit Using the high-low method, what is the variable cost per unit for utilities? $125 per unit Year 2 $133 per unit 12,000 $15,000 Year 1 8,000 $12,000
Assuming a mark-up of 13.54% and that your payment will be received 60 days after the start of the project, what is the cumulative total at the 5th month? Month 1 2 13 14 5 16 7 18 Total Planned Monthly Costs $13,110.84 $14,261.79 $36,314.98 $57.441.75 $27.141.85 $21,763.22 SO $O Planned Monthly Revenue $ Cumulative Costs Cumulative Revenue Cumulative Total
What is the variable cost per kilometer? How much is fixed maintenance costs per month ?
Using least square method, compute for the annual electricity cost if the machine hours use has a monthly average of 70.00 Amber Company manufacture laptops, preparing the next year budget the accountant complied these data. Month Machine Hours Electricity Cost Jan 80.00 2,330.40 Feb 70.00 2,226.60 Mar 65.00 2,174.70 Apr 60.00 2,122.80 May 60.00 2,122.80 Jun 35.00 1,863.30 Jul 70.00 2,226.60 Aug 86.00 2,392.68 Sep 37.00 1,884.06 Oct 50.00 2,019.00 Nov 96.00 2,496.48 Dec 100.00 2,538.00 10.38 1,500 10,219.20 2,226.60
7
The following data pertains to activity and utility costs for two recent years: Year 2 Year 1 Activity level in units 10,000 6,000 Utilities cost observed $12,000 $9,000 Using the high-low method, the cost formula for utilities is: a.1.50 per unit. b. 1.20 per unit. C. $3,000 plus $3.00 per unit d. $4,500 plus $0.75 per unit
If the high-low points method is used, the results when compared with those under the method of least squares, are (Variable Cost Per Unit, Total Fixed Costs). the given is a. Equal, Equal b. Higher by P1.26, Lower by P2,850 c. Lower by P1.26, Higher by P2,850 d. Higher by P5 , Lower by P1,500

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