(a) Determine the fixed costs and unit variable costs using the high-low method. Total fixed costs Variable cost per machine hour (b) eTextbook and Media Save for Later Electricity cost $ $ What electricity cost does the cost equation estimate for a level of activity of 500 machine hours? Amount differ $ By what amount does this differ from March's observed cost for 500 machine hours? $ ļ Attempts: 0 of 3 used Submit Answer
(a) Determine the fixed costs and unit variable costs using the high-low method. Total fixed costs Variable cost per machine hour (b) eTextbook and Media Save for Later Electricity cost $ $ What electricity cost does the cost equation estimate for a level of activity of 500 machine hours? Amount differ $ By what amount does this differ from March's observed cost for 500 machine hours? $ ļ Attempts: 0 of 3 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:← Chapter 5 Homework
October
November
Question 1 of 6
(a)
(b)
Total fixed costs
Determine the fixed costs and unit variable costs using the high-low method.
Save for Later
4,200
Variable cost per machine hour
3,300
<
eTextbook and Media
Electricity cost $
Amount differ
LA
$
630
$
350
What electricity cost does the cost equation estimate for a level of activity of 500 machine hours?
By what amount does this differ from March's observed cost for 500 machine hours?
Attempts: 0 of 3 used
- / 1
|||
Submit Answer
:
Transcribed Image Text:← Chapter 5 Homework
Question 1 of 6
January
February
March
The controller of Rather Production has collected the following monthly cost data for analyzing the behavior of electricity costs.
April
May
June
July
August
September
October
November
December
<
(a)
Total
Electricity Costs
$2,500
3,000
3,600
4,500
3,200
4,900
4,100
3,800
5,100
4,200
3,300
5,860
Total
Machine Hours
300
350
500
690
400
700
650
520
680
630
350
-/1
720
E
:
Expert Solution
Step 1
VARIABLE COST
Variable Cost are constant at per Unit basis. Total Variable Cost is Varry on different Number Of units manufactured. Variable Cost Include Direct material cost, Direct labour Cost & Variable OH etc.
FIXED COST
Fixed cost are constant at any level of Production. Fixed cost never changed until new expenses is not incurred by the organisation for increasing the product sale. Fixed cost include Depreciation, Sales & Promotion, Fixed OH etc.
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