60% increase During the months of January through June, the following total utility costs were paid at various production volumes: Month Total Utility Costs Total Production Volume January $10,000 32,000 units February 14,000 52,000 units March 16,000 64,000 units April 12,000 40,000 units May 8,000 24,000 units June 20,000 72,000 units a. Use the high-low method to calculate the cost formula utility costs. b. If the production volume were expected to be 50,000 units for the month of July, what amount of total costs would be expected?
60% increase During the months of January through June, the following total utility costs were paid at various production volumes: Month Total Utility Costs Total Production Volume January $10,000 32,000 units February 14,000 52,000 units March 16,000 64,000 units April 12,000 40,000 units May 8,000 24,000 units June 20,000 72,000 units a. Use the high-low method to calculate the cost formula utility costs. b. If the production volume were expected to be 50,000 units for the month of July, what amount of total costs would be expected?
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
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...
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60% increase
During the months of January through June, the following total utility costs were paid at various production volumes:
Month |
Total Utility Costs |
Total Production Volume |
January |
$10,000 |
32,000 units |
February |
14,000 |
52,000 units |
March |
16,000 |
64,000 units |
April |
12,000 |
40,000 units |
May |
8,000 |
24,000 units |
June |
20,000 |
72,000 units |
a. Use the high-low method to calculate the cost formula utility costs.
b. If the production volume were expected to be 50,000 units for the month of July, what amount of total costs would be expected?
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