Hello tutor answer this general accounting question do fast At the high level of activity in November, 7,000machine hours were run and power costs were$2,000. In April, a month of low activity, 2,000machine hours were run and power costs amountedto $6,000. Using the high-low method, what is theestimated fixed cost element of power costs?a. $12,000b. $6,000c. $3,600d. $8,400

Step 1: Define High-Low MethodThe high-low method is a commonly used cost allocation technique used…

Answered: At the high level of activity in…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...

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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_____.
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…
What is the estimated fixed cost element of power costs on these general accounting question?
6. The Kentucky Tools Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month January April July October Cost of Electricity (Y) Direct Labor-Hours (X) $7,000 750 $7,500 850 $8,500 $7,250 1,000 800 What would be the best equation using the high-low method? A) Y = $2,000+ $7.50X B) Y= $2,500 + $6X C) Y= $1,500 + $8X D) Y = $2,000 + $6X
Using the high-low method, how much is the electricity costs if the actual machine hours used is 4,200?
The electricity costs and machine hours for a period of 6 months are as follows Hours CostsMonths machine electricityJanuary 2,000 $ 4,800February 2,500 $ 5,200March 3,000 $ 5,400April 2,400 $ 5,000May 2,800 $ 5,600June 2,200 $ 5,000Using the high-low method, what is the formula to use to determine electricity costs at different volumes of electricity hours? (Fixed cost + variable cost × volume). a. Electricity costs = $ 2,800 + ($ 1.00 x number of machine hours) b. Electricity costs = $ 2,600 + ($ 1.00 x number of machine hours) c. Electricity costs = $ 400 + ($ 1.67 x number of machine hours) d. Electricity costs = $ 3,600 + ($ .60 x number of machine hours)
If fixed costs are $234,000, the unit selling price is $123, and the unit variable costs are $80, what is the break-even sales (units)? a.5,442 units b.1,902 units c.1,153 units d.2,925 units At the end of the year, overhead applied was $3,728,000. Actual overhead was $3,377,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to a.decrease by $702,000 b.increase by $351,000 c.decrease by $351,000 d.increase by $702,000 Bryce Co. sales are $881,000, variable costs are $460,800, and operating income is $288,000. What is the contribution margin ratio? a.47.7% b.52.3% c.57.5% d.43.4%

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