(b) What is the estimated fixed power cost each month? Fixed power costs $ Save for Later High Low

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A8

Sheridan Co. gathered the following information on power costs and factory machine usage for the last six
months:
Month
January
February
March
April
May
June
Power Cost
$28,180
35,836
32,690
26,030
23,680
20,500
Factory Machine
Hours
15,700
21,200
18,600
15,000
13,400
10,400
Using the high-low method of analyzing costs, answer the following questions and show computations to
support your answers.
Transcribed Image Text:Sheridan Co. gathered the following information on power costs and factory machine usage for the last six months: Month January February March April May June Power Cost $28,180 35,836 32,690 26,030 23,680 20,500 Factory Machine Hours 15,700 21,200 18,600 15,000 13,400 10,400 Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers.
(b)
What is the estimated fixed power cost each month?
Fixed power costs $
Save for Later
High
Low
Transcribed Image Text:(b) What is the estimated fixed power cost each month? Fixed power costs $ Save for Later High Low
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