Bristol Fitness Centers operates a chain of gyms and reports the following supply costs: Client-Visits Supply Cost ($) Month March 12,350 29,750 April 11,940 29,540 May 12,780 29,980 June 13,210 30,220 July 12,180 29,620 August 11,730 29,380 September 12,800 29,990 October 12,100 29,660 November 12,300 29,760 Management believes that supply cost is a mixed cost that depends on client visits. Use the high-low method to estimate the variable and fixed components of this cost.

Bristol Fitness Centers operates a chain of gyms and reports the following supply costs: Client-Visits Supply Cost ($) Month March 12,350 29,750 April 11,940 29,540 May 12,780 29,980 June 13,210 30,220 July 12,180 29,620 August 11,730 29,380 September 12,800 29,990 October 12,100 29,660 November 12,300 29,760 Management believes that supply cost is a mixed cost that depends on client visits. Use the high-low method to estimate the variable and fixed components of this 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

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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