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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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