Assume the local cable company has the following information available about fleet miles and operating costs for its service department: Year Fleet Miles Operating Costs 2013 247,000 2014 363,000 $228,700 $286,700 Using the high-low method, develop a cost-estimating equation for total annual operating cost

Assume the local cable company has the following information available about fleet miles and operating costs for its service department: Year Fleet Miles Operating Costs 2013 247,000 2014 363,000 $228,700 $286,700 Using the high-low method, develop a cost-estimating equation for total annual operating cost

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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The Apollo Delivery Service has the following information about its truck fleet miles and operating costs Year 2018 2019 2020 Miles 500,000 600,000 700,000 Operating Costs $320,000 $370,000 $420,000 What is the best estimate of fixed costs for fleet operating expenses using the high-low method? $100,000 $370,000 $70,000 $200,000
Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years:YearMilesOperating Costs201655,000$195,000201770,000$210,000201850,000$180,000201965,000$205,000202085,000$225,150 Using the high-low method, what is the cost estimate for variable costs for 2021?Select one:A. $1.60B. $1.50C. $1.29D. $2.00
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.
Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
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.
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
ssume Southwest Airlines has the following information available about total miles traveled and operating costs for one of its aircrafts: Year Miles Traveled Operating Costs Year 1 123,500 $228,700 Year 2 181,500 $315,700 Using the high-low method, develop a cost-estimating equation for total operating costs. Cost estimating equation = ($ 25,300 Xx miles traveled) + $0 X
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3. Full Throttle Delivery Co provided the following information for costs of its delivery fleet. Month Miles Total Cost $ 95,000 $ 103,000 $ 80,000 $ 101,000 January February 60,000 70,000 March 49,000 79,000 April Use the high-low method to determine/complete the following: Variable cost per unit Total fixed costs а. b. Total cost equation Create the graphical representation of the estimated total cost line, labeling all pertinent information What would estimated costs total miles travelled was 55,750? с. d. е.
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