A beverage company producing grape juices is about to apply High-Low method to estimate their energycost behavior. The following costs were incurred in the past 12 months:Energy cost$70,200$6,150Monthgrape juice produced(pints)JanuaryFebruary105,00061,600March66,000$6,000April72,000$67,350May90,000$68,700June96,000$70,050July120,000$84,000August90,000$68,400September90,000$69,000October84,000$68,100November127,000$74,300December117,000$74,850

High Low Method of Cost Estimation: Variable Cost per unit = (Highest activity total cost−Lowest…

A beverage company producing grape juices is about to apply High-Low method to estimate their energy cost behavior. The following costs were incurred in the past 12 months: Month grape juice produced(pints) Energy cost $70,200 $66,150 $66,000 January 105,000 February 61,600 March 66,000 April 72,000 $67,350 May 90,000 $68,700 June 96,000 $70,050 July 120,000 $84,000 August 90,000 $68,400 September 90,000 $69,000 Otober 84,000 $68,100 November 127,000 $74,300 December 117,000 $74,850

A beverage company producing grape juices is about to apply High-Low method to estimate their energy cost behavior. The following costs were incurred in the past 12 months: Month grape juice produced(pints) Energy cost $70,200 $66,150 $66,000 January 105,000 February 61,600 March 66,000 April 72,000 $67,350 May 90,000 $68,700 June 96,000 $70,050 July 120,000 $84,000 August 90,000 $68,400 September 90,000 $69,000 Otober 84,000 $68,100 November 127,000 $74,300 December 117,000 $74,850

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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