Provide solutions for financial accounting At the high level of activity in August, 9,000 machine hours were usedand utility costs were $21,000. In February, a month of low activity,3,000 machine hours were used and utility costs were $12,000.Using the high-low method, what is the estimated fixed cost element ofutility costs?A. $6,000B. $15,000C. $9,000D. $7,500

Step 1: Definition of High-Low MethodThe High-Low Method is a cost accounting technique used to…

Answered: At the high level of activity in…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter20: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are 20,000, and expected number of moves is 40,000. The best activity for moving is a. 4 per move. b. 1.33 per hour-move. c. 4 per hour. d. 2 per move. e. e None of these.
Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
What is the estimated fixed cost element of power costs?
At the high level of activity in November, 10,300 machine hours were run and power costs were $20,600. In April, a month of low activity, 3,800 machine hours were run and power costs amounted to $8,000. Using the high-low method, the estimated fixed cost element of power costs is __. ???
What is the estimated fixed cost element of power costs ???
Give answer the question
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At high level of activity in November, 8000 machine hours were run and power cost were $18,00. In April, a month of low activity, 2000 machine hours were run and power cost amounted to $9,000. Using the high-low method, the estimated fixed cost element of power cost is.
What is the estimated fixed cost ?
At the high level of activity in November solve this question
The controller of Manufacturing Co. has collected the following data on drilling machines: Month Total Cost Total Hours March $12,460 8,100 April $12,000 7,600 May $63,000 30,000 June $14, 740 9,800 July $25,000 20000 August $55,000 22,000 The price per unit of the drilling machines is $25. Please calculate all of the following: Variable Cost and Fixed Cost using the High-Low Method. Breakeven point in units. Breakeven point in dollars using the Contribution Margin Ratio. Margin of Safety Percentage if their sales are $756,000. How many units they would need to sell in order to have a Net Income of…

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