Given solution for General accounting question not use ai Bright Star Motors collects the following data concerning maintenance costs forthe first five months of the year:Month Miles driven Maintenance costJanuary 12,000$18,000February 10,000$16,500March 11,500$17,000April9,500$15,000May13,000$19,000Instructions:Using the High-Low method, answer the following questions:a) What is the estimated variable portion of maintenance costs per mile driven?b) What is the estimated fixed maintenance cost each month?c) If it is estimated that 16,000 miles will be driven in June, what is the expectedtotal maintenance cost for June?

Step 1: Define High-Low MethodThe High-Low method is a cost estimation technique used to separate…

Answered: Bright Star Motors collects the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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The following information is available regarding the total repair costs of Alexander Design Company for six months of 2022: Units Produced Repair Cost January 1,500 $15,875 February 1,750 $16,500 March 1,000 $11,250 April 1,250 $15,250 May 1,875 $17,750 June 2,250 $20,250 Using the least-square regression analysis on Excel, construct a cost formula. Run a regression analysis on the data above and provide your response to the following three questions. Round decimals to the nearest tenth (i.e, two decimal points). (1) Provide the regression output and construct a cost model. (2) According to the cost model, what is the estimated total fixed cost? (3) According to the cost model, what is the estimated variable cost per unit?
Please help me find fixed costs. Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years. Number of Visitors per Year (thousands) Maintenance Costs($000) 1,825 $ 2,925 2,007 3,225 2,375 3,750 Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor
The manager of Quick Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,800 for 1,200 inspections to $3,800 for 700 inspections. Read the requirements. Requirement 1. Use the high-low method to calculate the variable cost per inspection. Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.) Requirements 1. Use the high-low method to calculate the variable cost per inspection. 2. Calculate the total fixed costs. 3. Write the equation and calculate the operating costs for 800 inspections. 4. Draw a graph illustrating your total cost under this plan. Show the costs at 700, 800, and 1,200 inspections. (Use the high-low method for all calculations.)
Pharoah Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 21,700 $43,397 August 38,560 57,840 September 43,380 66,275 October 26,510 45,790 November 48,200 89,772 December 45,790 74,710
Solve this problem
Please provide answer
Markowis Corp has collected the following data concerning its maintenance costs for the pest 6 months units produced Total cost July 18,015 36,036 august 37,032 40,048 September 36,036 55,055 October 22,022 38,038 November 40,040 74,575 December 38,038 62,062 Compute the variable coot per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25) Compute the fixed cost elements using the high-low method.
Miss River Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Miss River Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $6,500,000 2,500,000 February 6,187,500 2,250,000 March 6,980,000 2,940,000 April 7,500,000 3,400,000 May 8,775,000 4,500,000 June 8,200,000 4,000,000 Determine the variable cost per gross-ton mile and the fixed costs. Round variable cost per unit to the nearest cent. Variable cost $ per gross-ton mile Fixed cost $
Compute the fixed cost portion using the high low method of estimating costs ???
The Equipment Maintenance Department of Kason Inc. has incurred the following costs during the past five months: Month Production Total cost July 1,000 units $45,550 August 1,500 units $52,000 September 2,100 units $61,500 October 1,800 units $57,500 November 750 units $41,250 Using the High-Low method, determine the variable cost per unit, and the fixed cost per month.
Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed “gross-ton miles,” which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $1,037,700 268,000 February 1,157,000 299,000 March 817,700 194,000 April 1,109,300 290,000 May 930,400 233,000 June 1,192,800 315,000 Determine the variable cost per gross-ton mile and the fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost
Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Maintenance Costs July 19,900 $44,732 August 35,552 53,328 September 39,996 61,105 October 24,442 46,388 November 44,440 82,769 December 42,218 68,882 Compute the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places, e.g. 2.25.) Variable cost per unit $enter the variable cost per unit in dollars rounded to 2 decimal places Compute the fixed costs using the high-low method for this mixed cost. Total fixed costs $enter the fixed costs in dollars

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