abc general accounting 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: Definition of the High-Low MethodThe high-low method is a technique used to separate fixed…

Answered: At the high level of activity in…

Principles of Accounting Volume 2

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ISBN:9781947172609

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Chapter2: Building Blocks Of Managerial Accounting

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

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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…
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
High low method?
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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%
During the month of August, Amer Corporation produced 12,000 units and sold them for P20 per unit. Total fixed cost for the period were P 154,000, and the operating profit was P 26,000. 9. Based on the foregoing information, the variable cost per unit is a. P 4.50 b. P 5.00 с. Р 6.00 d. P 7.17 Data to be used in applying the high-low method shows the highest cost of P69,000 and the lowest cost of P52,000. The data show P148,000 as the highest level of sales and P97,000 as the lowest level. 10. What is the variable cost per peso sales? c. P 0.54 d. P 3.00 a. P 0.33 h. P 0.47
Using the high-low method, how much is the electricity costs if the actual machine hours used is 2,800?
1. Kelley Company produced 10,000 units and sold 7,000 units. Direct materials = $12, direct labor = $8, variable MOH = $2, variable S&A = $1. Total fixed MOH for the year was $50,000. What is the amount of COGS under variable costing? (Single Choice) $220,000 $161,000 $154,000 O $230,000
At an activity level

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