Assume the following hours of cleaning work and the total cleaning cost (mixed cost) for the six months: Number of hours Total cleaning cost January 8 $3,000 February 10 $3,410 March 13 $3,560 April 16 $4,180 May 14 $3,900 June 11 $3,450 Using the high-low method, estimate the cost formula for this cleaning cost and discuss the drawbacks of the high-low method.
QUESTION 2
Company ABC is a manufacturing company that provided the following information:
- Assume the following hours of cleaning work and the total cleaning cost (mixed cost) for the six months:
|
|
Number of hours |
Total cleaning cost |
|
January |
8 |
$3,000 |
|
February |
10 |
$3,410 |
|
March |
13 |
$3,560 |
|
April |
16 |
$4,180 |
|
May |
14 |
$3,900 |
|
June |
11 |
$3,450 |
Using the high-low method, estimate the cost formula for this cleaning cost and discuss the drawbacks of the high-low method.
In the production of July, direct materials used totaled $280. Direct labor was $270 and manufacturing overhead was $200. The beginning work in process was $1,000 and ending work in process was $500. The beginning finished goods were $2,000 and ending finished goods was $1,000. What were total
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