5. The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation Cost Hours $100,000 61,000 85,000 78,200 3,500 2,000 2,600 2,450 3,000 3,900 3,740 3,380 91,000 110,400 106,000 93,000 Calculate the variable cost per hour Calculate the total fixed costs Write the equation which measures the cost behaviour of the costs Calculate the operating costs for 3,750 hours.
5. The MTN Company has assembled the following data pertaining to certain costs which cannot be easily identified as either fixed or variable. MTN has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation Cost Hours $100,000 61,000 85,000 78,200 3,500 2,000 2,600 2,450 3,000 3,900 3,740 3,380 91,000 110,400 106,000 93,000 Calculate the variable cost per hour Calculate the total fixed costs Write the equation which measures the cost behaviour of the costs Calculate the operating costs for 3,750 hours.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:5. The MTN Company has assembled the following data pertaining to certain costs which
cannot be easily identified as either fixed or variable. MTN has heard about a method
of measuring cost functions called the high-low method and has decided to use it in
this situation
Cost
Hours
$100,000
61,000
85,000
78,200
91,000
110,400
106,000
3,500
2,000
2,600
2,450
3,000
3,900
3,740
3,380
93,000
Calculate the variable cost per hour
Calculate the total fixed costs
Write the equation which measures the cost behaviour of the costs
Calculate the operating costs for 3,750 hours.
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