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

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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help this cost function answer is accounting

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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The electricity costs and machine hours for a period of 6 months are as follows Hours CostsMonths machine electricityJanuary 2,000 $ 4,800February 2,500 $ 5,200March 3,000 $ 5,400April 2,400 $ 5,000May 2,800 $ 5,600June 2,200 $ 5,000Using the high-low method, what is the formula to use to determine electricity costs at different volumes of electricity hours? (Fixed cost + variable cost × volume). a. Electricity costs = $ 2,800 + ($ 1.00 x number of machine hours) b. Electricity costs = $ 2,600 + ($ 1.00 x number of machine hours) c. Electricity costs = $ 400 + ($ 1.67 x number of machine hours) d. Electricity costs = $ 3,600 + ($ .60 x number of machine hours)
Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. September October November December a) £0.08 b) £4.86 c) £0.25 d) £12.50 Cost Machine Hours £4,100 22,000£3,700 18,000£3,900 19,000 £4,500 28,000
18. The following information is available for electricity costs for the last six months of the year: Month Volume Costs July 2,800 4.400 August 5,600 10,800 September 6,400 11,400 October 3.500 7,800 November 2,400 4,800 December 4,200 8,100 Using high-low method, What is the prediction equation? OY= 100 +3.02 X OY = 200 + 2.83 X OY= 420 + 1.65 X none of thc above
Using the high-low method, how much is the electricity costs if the actual machine hours used is 4,200?
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,100 15,000 April 2,700 10,000 May 2,900 12,000 June 3,600 18,000 a.$10.00 b.$0.63 c.$0.11 d.$0.67
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,070 15,158 April 2,688 10,482 May 2,870 12,037 June 3,847 17,906 Oa. $1.09 Ob. $1.56 Oc. $0.16 Od. $1.05
Using the high-low method, how much is the electricity costs if the actual machine hours used is 2,800?
What is the correct option? General accounting question
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Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,142 15,489 April 2,691 10,041 May 2,810 11,509 4 June 3,881 18,009 a. $0.15 b. $1.05 O c. $1.64 Od. $1.01 10:21 PM 670002 K 63°F