Calculate the variable rate using the High Low method of measuring cost function. January Cost of electricity 55,000 machine hours $80,450 Low capacity September 30,000 machine hours Cost of electricity $64,200

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 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Calculate the variable rate using the High Low method of measuring
cost function.
January
Cost of electricity
55,000 machine hours
$80,450
Low capacity September 30,000 machine hours
Cost of electricity
$64,200
Transcribed Image Text:Calculate the variable rate using the High Low method of measuring cost function. January Cost of electricity 55,000 machine hours $80,450 Low capacity September 30,000 machine hours Cost of electricity $64,200
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