2. Tech Company has the following data for its maintenance costs: month Total Maintenance Costs Total Machine Hours January $2900 300 February 3000 400 March 3600 600 April 4300 790 May 3200 500 June 4500 800 Determine the fixed and variable cost using the high low method!

2. Tech Company has the following data for its maintenance costs: month Total Maintenance Costs Total Machine Hours January $2900 300 February 3000 400 March 3600 600 April 4300 790 May 3200 500 June 4500 800 Determine the fixed and variable cost using the high low method!

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: A company has the following data about its costs: Variable unit cost: Raw material $2.3 Labor $1.2…

A: The contribution margin is considered as an excess of revenue over variable cost.

Q: Given the following cost and activity observations for Smithson Company's utilities, use the…

A: Under high low method total costs at highest and lowest level of activity are considered for…

Q: Harbor images nas collected the lollowing cost data for various leveis of activity. Images Created…

Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…

A: Unit Cost Highest Point June 17,550 3,767 Lowest Point April 10,257 2,674…

Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…

A: X company has a mixed cost of maintenance costs using hours as the activity level. Month Hours…

Q: Luca Co offers machine rental services for concrete cutting. Consider the following costs of the…

A: TOTAL COST PER HOUR : = ESTIMATED TOTAL COST / TOTAL VOLUME OF HOURS

Q: Kesterson Corporation has provided the following information: Cost per Cost per Direct materials…

A: Variable cost needs to be incurred for each additional unit. Where's fixed cost will remain constant…

Q: Full Throttle Delivery Co provided the following information for costs of its delivery fleet. Month…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…

A: High - low method is used to divide variable cost and fixed cost from the limited data available on…

Q: Given the following cost and activity observations for Bounty Company’s utilities, use the high-low…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: . The expected costs for the Maintenance Department Fixed costs (salaries, tools): Variable costs…

A: calculation of single charging rate for maintenance department and amount charge for this year are…

Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…

A: High low method is a method of cost estimation in which costs at highest and lowest level of…

Q: Check my work Assume that a company makes three products-Product A, Product B, and Product C-and…

A: Your analysis is on the right track! You've correctly identified the key steps to solve this…

Q: The Sunland Law Office has the following monthly telephone records and costs: Calls Costs 7,700…

A: Mixed cost problems are solved using the High -Low-cost method. Variable and fixed costs are…

Q: Coraline Co. has the following cost and activity data. Month Units Total Cost September 80,000…

A: The High-low method of determining cost variance considers the highest and lowest cost being…

Q: What is the correct choice? Datamatix Company has gathered the following data: Unit Sales…

A: Break-even point: The break-even point refers to a point where the total cost is equal to the total…

Q: Bellucci Corporation has provided the following information: Direct materials. Direct labor Variable…

A: Introduction: Variable costs are those cost which keep on changing with the change in level of…

Q: Required information EX 6-30 (Static) High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) [The…

A: The total costs incurred for the production are classified as fixed and variable costs. The variable…

Q: d costs of those two machines nd Machine 2 (M2) cycle time Cost

A: Working notes :- Contribution margin =…

Q: 8.Given the following cost and activity observations for Bounty Company's utilities, use the…

A: Fixed costs: These are costs which are incurred irrespective of the production or sale activities.…

Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…

A: High Low method is used to determine variable and fixed portion of the total cost at different level…

Q: Grover Company has the following data for the production and sale of 1,900 units. Sales price per…

A: Prime cost means the addition of direct material consumed and direct labour incurred.Factory…

Q: The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three…

A: Contribution margin is a fiscal standard that represents the quantum of plutocrat generated…

Q: The table below shows monthly data collected on production costs and on the number of units produced…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Required information [The following information applies to the questions displayed below.) Alden…

A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…

Q: Based on the above, using the high-low method, the estimated fixed cost element is * $22,460 O…

A: Variable cost vary with each unit of production. Fixed cost remain same irrespective of the level of…

Q: Month Machine Hours OH costs February…

A: The total overhead cost may include variable component and fixed components. The variable cost…

Q: Blaney Company has one mixed cost. It uses machine hours as the activity level. Using the high - low…

A: Variable cost represents the cost that varies with the change in output. Whereas, fixed cost does…

Q: Suppose that Patron Company sells a product for $24. Unit costs are as follows: Direct materials…

A: 1. Variable Cost per Unit: The cost that varies with the level of production for each unit.2.…

Q: Sheridan Company accumulates the following data concerning a mixed cost, using miles as the activity…

A: High low method is one of the method used for cost estimation. Under this, total fixed costs and…

Q: Portman Company's activity for the first three months of 2022 are as follows: Machine Hours…

A: High low method is one of important method used for cost estimation. Under this, highest level and…

Q: Leo Company wishes to determine the fixed portion of its electrical costs (a mixed cost).…

A: The question is based on the concept of Cost Accounting.

Q: Given the following cost and activity observations for Smithson Company’s utilities, use the…

Q: Given the following costs and activities for Dance Company's electrical costs, use the high-low…

A: Businesses need to understand variable costs since they directly affect the cost of producing each…

Q: Information concerning a product produced by Rundle Company appears as follows. Sales price per…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Brendon Company reported the following data. . Price per unit: $20 . Fixed costs: $6,000 . Breakeven…

A: Formula used: Break even units = Fixed cost / ( Sales price per unit - variable cost per unit )

Q: The following monthly data are available for the Charger Company and its only product, Product AJ:…

A: Contribution means the difference between the selling price and variable cost . Fixed cost when…

Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…

A: Variable costs are the types of costs that keep changes in total due to change in the level of the…

Q: Current Attempt in Progress In Robert's manufacturing plant, the estimated monthly overhead cost…

A: Based on the provided information about Robert's manufacturing plant's overhead cost function:(a)…

Q: For this scenario, calculate the mixed costs at different levels across the relevant range, then…

A: Fixed cost is that cost which do not change with change in level of activity. Variable cost is that…

Q: Using the high low method, estimate total maintenance cos should activity levels reach 15,500…

A: High Low Method :— Under this method, fixed and variable cost are separated from total mixed costs.…

Q: ounded to the nearest dollar) using the following data is Line Item Description Amount Variable…

A: Markup % = (Fixed cost + Desired profit) / Total Variable cost Markup % = ($90,000 + $150,000) /…

Q: TOI Dwing data relate company for the last six months of 2010:- Months Activity level- hours (X)…

A: As per high low method of cost estimation : Variable cost pu = highest activity cost - lowest…

Q: Cullumber Company accumulates the following data concerning a mixed cost, using miles as the…

A: Formulas: Variable cost per unit = Change in total cost / Change in miles -----------------------…

Q: Voltar has collected the following data for recent months Month Miles Driven Total Cost March 41,000…

A: According to the above data The Highest Activity Cost occurs in the month of April i.e. 44234 and…

Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…

A: Variable cost: These are those cost which changes with the changing level of activity i.e. higher…

Q: The controller of Manufacturing Co. has collected the following data on drilling machines: Month…

A: Variable Cost and Fixed Cost using the High-Low MethodThe high-low method is a method of separating…

Q: Given the following cost and activity observations for Bounty Company's utilities, use the high-low…

A: Introduction: The cost of electricity, temperature, sewer, and water ingested during a reporting…

Question

2. Tech Company has the following data for its maintenance costs:

month	Total Maintenance Costs	Total Machine Hours
January	$2900	300
February	3000	400
March	3600	600
April	4300	790
May	3200	500
June	4500	800

Determine the fixed and variable cost using the high low method!

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost Multiple Choice Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: (Round your intermediate calculations to 2 decimal places.) O O Prior Year 17,100 20,100 $ 29,400 $ 34,200 $29,400 per year; $1.701 per machine hour Current Year $2,040 per year; $1.701 per machine hour $2,040 per year; $1.600 per machine hour $29,400 per year; $1.600 per machine hour
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,141 14,509 April 2,608 9,666 May 2,883 11,779 June 3,576 17,812 Oa. s0.55 Ob. s0.12 Oc. S0.59 Od. $1.19
X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the activity level: Hours Cost 35.000 $185.000 August September 40,000 210,000 October 30.000 160,000 November 42,000 220,000 December 51.000 265.000 Based on the above, in applying the high-low method, what is the unit variable cost? * $5 $0.5 O $2.05 None of the above
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round to the nearest cent. Machine Hours March April May June Oa. $0.15 Ob. $1.02 Oc. $0.98 Od. $1.75 Cost $3,007 2,696 2,803 3,778 14,577 10,259 11,668 17,667
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income a. b. $ $ What is the company's unit contribution margin? $0.86 per unit $2.35 per unit $4.10 per unit $1.75 per unit C. d. 520,000 2,132,000 650,000 $ 464,000 $ 260,000 $ 312,000 $ 446,000
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,091 14,781 April 2,676 9,929 May 2,812 11,845 June 3,520 17,889 a.$0.49 b.$0.53 c.$0.11 d.$1.17
1Travel agency reported that last week they had the following trips booked. Day Costs Trips booked Monday 800 1200 Tuesday 600 1300 Wednesday 500 1400 Thursday 1000 1600 Friday 400 900 Saturday 300 800 Sunday 200 600 Calculate the Variable cost per unit?
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,093 14,645 April 2,668 10,463 May 2,846 11,922 June 3,779 18,072 a.$0.15 b.$0.98 c.$1.61 d.$1.02
Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating income
Given the following cost and activity observations for Smithson Company’s utilities, use the high-low method to determine Smithson's fixed costs per month. Do not round intermediate computations. Cost Machine Hours January $88,390 9,700 February 156,150 18,500 March 110,360 12,500 April 126,390 14,600 a. $11,000 b. $13,700 c. $23,300 d. $43,800
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,031 14,997 April 2,698 10,326 May 2,858 12,140 June 3,893 18,050 a.$0.15 b.$0.77 c.$1.55 d.$0.73
Townhall Corp. has provided the following data for its utility cost: Prior Current Year Year 8,000 10,000 Machine hours Utility cost $26,600 $31,000 Utility cost is a mixed cost with variable and fixed components. The fixed and variable components of utility cost are closest to: (Round your intermediate calculations to 2 decimal places.) A