At the high level of activity in December, 9,500 machine hours were run, and power costs were $19,200. In June, a month of low activity, 4,200 machine hours were run, and power costs amounted to $9,100. Using the high-low method, calculate the estimated total power cost if 7,000 machine hours are run in a given month.

At the high level of activity in December, 9,500 machine hours were run, and power costs were $19,200. In June, a month of low activity, 4,200 machine hours were run, and power costs amounted to $9,100. Using the high-low method, calculate the estimated total power cost if 7,000 machine hours are run in a given month.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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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.
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_____.
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At the high level of activity in November solve this question
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 24,000 $ 282,400 Slowest month (December) 18,000 $ 220,000 If Macon expects to use 20,000 machine hours next month, what are the estimated direct labor costs?
XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units: Variable costs $ 32,500; Fixed costs $ 25,000; Mixed costs $ 21,500; Total costs $ 79,000. During October, the activity level was 16,000 units, and the total costs incurred were $ 178,000. If the activity level were expected to be 11,000 units for the month of December, what amount of total costs would be expected? Select one: a. $ 142,000 b. None of the answers given. $ 160,000 d. $ 133,000 $ 151,000
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