Bella Transport Services tracks its monthly truck maintenance costs based on mileage driven. Below is the data for the first five months of the year: . • • . January: 12,000 miles, $18,000 maintenance cost February: 9,000 miles, $15,000 maintenance cost March: 11,000 miles, $17,500 maintenance cost April: 8,500 miles, $13,500 maintenance cost May: 10,000 miles, $16,000 maintenance cost Using the high-low method, answer the following: a) What is the estimated variable cost per mile driven? b) What is the estimated fixed maintenance cost per month? c) If Bella estimates 14,000 miles in June, what is the expected total maintenance cost?

Bella Transport Services tracks its monthly truck maintenance costs based on mileage driven. Below is the data for the first five months of the year: . • • . January: 12,000 miles, $18,000 maintenance cost February: 9,000 miles, $15,000 maintenance cost March: 11,000 miles, $17,500 maintenance cost April: 8,500 miles, $13,500 maintenance cost May: 10,000 miles, $16,000 maintenance cost Using the high-low method, answer the following: a) What is the estimated variable cost per mile driven? b) What is the estimated fixed maintenance cost per month? c) If Bella estimates 14,000 miles in June, what is the expected total maintenance cost?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

please answer in 30 minutes.
Dermody Snow Removal's cost formula for Its vehicle operating cost is $2,960 per month plus $326 per snow-day. For the month of December, the company planned for activity of 20 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $9,770. The spending varlance for vehlcle operating cost in December would be closest to: Multiple Cholce $290 U $290 F $942 U $942 F
Silver Products has presented the following information for the past eight months operations: Month Units Total Cost $ 27,600 $ 26,000 $ 18,500 $ 23,400 $ 26,200 $ 31,150 $ 26,700 $ 25,900 April 8,100 6,500 3,900 5,700 7,100 8,500 7,900 6,900 Мay June July August September October November a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.) Fixed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 5,100 units produced? (Do not round intermediate calculations.) Total Costs
I want to answer this question
Island Enterprises has presented the following information for the past eight months operations: 11 Month April KAy Daits Total Cost $18,500 4,750 J,950 $16,400 2,150 $12,600 $14,700 June J,550 July Aagust Septamber 4,950 Octaber 1,250 $17,500 4,650 Movember 4,150 $21,000 $18,000 $17,200 a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round variable cost to 2 decimal places.) Faed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 3,750 units produced? (Do not round your intermediate calculations.) Total Coots
Please give me answer the question
assume in march, when dog-days occupancy was at an annual low of 500 days, the average cost per dog-day was 26$. in july, when dog-days were at a capacity level of 4,500, the avgerage cost per dog-day was $10. a. develop an equation for monthly operating costs b. determine the avergae cost per dog-day at an anuual volume of 28,000 dog-days
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May $158,900 $194,300 a. $122,145 b. $158,900 c. $140,523 d. $119,175 Manufacturing costs* Insurance expense** Depreciation expense Property tax expense*** *Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $990 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are 990 1,940 460 990 1,940 June 460 $208,700 990 1,940 460
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $159,300 $195,800 $203,600 Insurance expense** 1,140 1,140 1,140 Depreciation expense 1,820 1,820 1,820 Property tax expense*** 500 500 500 * Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month.**Insurance expense is $1,140 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October).***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a.$122,895 b.$119,475 c.$159,300 d.$141,098
Corazon Manufacturing Company has a purchasing department staffed by five purchasingagents. Each agent is paid $28,000 per year and is able to process 4,000 purchase orders. Lastyear, 17,800 purchase orders were processed by the five agents.Required:1. Calculate the activity rate per purchase order.2. Calculate, in terms of purchase orders, the:a. total activity availabilityb. unused capacity3. Calculate the dollar cost of:a. total activity availabilityb. unused capacity4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for $14,000? How many pur-chase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: April May June Manufacturing costs* $156,300 $192,700 $213,400 Insurance expense*: 970 970 970 Depreciation expense 1,820 1,820 1,820 Property tax expense*** 540 540 540 Of the manufacturing costs, three-fourths are paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $970 a month; however, the insurance is paid four times yearly in the first month of the quarter, (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments expected for Finch Company in the month of April are a. $120,135 b. $117,225 c. $138,218 d. $156,300
Solve this question