Please provide answer this general accounting Ahlam Corporation accumulates the following data concerning a maintenancecost:Month Miles driven Maintenance costJanuary 10,000$15,000February 8,000$14,500March9,000$12,500April7,500$12,000May9,500$16,000Instructions:Using the High-Low method of analyzing costs, answer the following questions:a) What is the estimated variable portion of maintenance costs per mile driven?b) What is the estimated fixed maintenance cost each month?c) If it is estimated that 15,000 miles driven will be run in July, what is theexpected total maintenance cost for July?

Step 1: Define High-Low MethodThe high-low method decomposes the total mixed costs into fixed-cost…

Answered: Ahlam Corporation accumulates the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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1. Using the high-low method of cost estimation, estimate the behavior of the maintenance costs incurred by Nation’s Capital Fitness, Incorporated. Express the cost behavior pattern in equation form. Note: Round coefficient of X to 2 decimal places and other answer to the nearest whole dollar amount. 2. 2. Using your answer to requirement 1, what is the variable component of the maintenance cost? Note: Round your answer to 2 decimal places.
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50
Determine fixed and variable costs using the high-low method and prepare graph. E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs. Total Maintenance Costs Total Machine Hours Month January February March April May June $2,500 3,000 3,600 4,500 3,200 4,900 300 350 500 690 400 700 Instructions a. Determine the fixed and variable cost components using the high-low method. b. Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 cost increments.
In the process of finding the optimum order quantity the following costs are obtained per order or per unit annually. Inspection Cost = SR 4 Cost of Interest = SR 4 Insurance Cost = SR 2 Administration Cost = SR 4 Obsolescence = SR 3 Depreciation Cost = SR 2 Breakage Cost = SR 2 Given that the annual Demand is 500,000. Number of order?
Using the least-squares method of analyzing costs, answer the following questions and show computations to support your answers. a. What is the estimated variable portion of maintenance costs per labor hour? B.What is the estimated fixed maintenance cost each month? C.Formulate the regression equation D.If it is estimated that 600 labor hours will be used in July, what is the expected total power cost for July?
Required:Solve the variable and fixed cost component using: a) High-Low method b) Least-Squares Regression method
The following information relates to Excalibur Delivery Services: Year 1: Total miles driven 615,000Year 1: Total operating costs $211,500Year 2: Total miles driven 935,000Year 2: Total operating costs $275,500 Use the high-low method to calculate Excalibur’s total fixed costs.
Floryn Instruments Co. developed the following regression equations to indicate costs at various activity levels: Direct labor = P4 per unitMaterials = P3 per unitSupervision = P5,000Power = 300 + P0.25 per unit + P0.50 per machine hourFactory supplies = P250 + P0.75 per unitDepreciation—equipment = P1 per machine hourDepreciation—building = P10,000During the next period, the company anticipates production of 20,000 units and usage of 3,000 machine hours.Required: Prepare a schedule of the production costs to be incurred during the next period.
Need answer the accounting question
Which of the following costs would be classified as variable and which would beclassified as fixed, if units produced is the activity base? a. Direct materials costs b.Electricity costs of $0.35 per kilowatt-hour
Determine fixed costs using the high-low method from the following data: Total Costs Level of Activity P65,000 11,250 P52,000 8,000 P86,000 16,500 a. P45,000 b. P20,000 c. P16,500 d. P9,500

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