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(c) What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs $ By what amount does this differ from June's observed cost for 790 machine hours? Amount differ %24

(c) What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs $ By what amount does this differ from June's observed cost for 790 machine hours? Amount differ %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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(c) What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs $ By what amount does this differ from June's observed cost for 790 machine hours? Amount differ eTextbook and Media
Transcribed Image Text:(c) What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs $ By what amount does this differ from June's observed cost for 790 machine hours? Amount differ eTextbook and Media
CoSts. Total Total Electricity Costs Machine Hours January $2,370 210 February 2,920 390 March 3,580 470 April 4,530 690 May 3,210 470 June 4,980 790 July 4,150 625 August 3,850 530 September 5,160 665 October 4,240 605 November 3,240 390 December 6,570 810 (a) Your answer is correct. Determine the fixed- and variable-cost components using the high-low method. Fixed-costs 900 Variable cost per machine hour 7 eTextbook and Media Assistance Used Attempts: 1 of 2 used %24
Transcribed Image Text:CoSts. Total Total Electricity Costs Machine Hours January $2,370 210 February 2,920 390 March 3,580 470 April 4,530 690 May 3,210 470 June 4,980 790 July 4,150 625 August 3,850 530 September 5,160 665 October 4,240 605 November 3,240 390 December 6,570 810 (a) Your answer is correct. Determine the fixed- and variable-cost components using the high-low method. Fixed-costs 900 Variable cost per machine hour 7 eTextbook and Media Assistance Used Attempts: 1 of 2 used %24
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