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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 9DQ: Describe the cost formula for a strictly variable cost such as electrical power cost of 1.15 per...

See similar textbooks

Related questions

Q: Need answer the accounting question

A: Total Debt ratio = Debt/ Total Assets.40 = $400,000/Total AssetsTotal Assets = 400,000/.40 =…

Q: Need answer the accounting question not use ai

A: Step 1:- Introduction to the Asset turnoverAsset turnover is the ratio where the amount of sale is…

Q: Need answer the accounting question not use ai

A: Step 1: Define High-Low MethodThe high-low method is one of the method used to identify the variable…

Q: Differential Revenue

A: Explanation of Export Offer Price: The export offer price is the price at which a company agrees to…

Q: Mr A and Mrs A, married couple and residents of Philippines had the following data in 2018:…

A: Step 5: Adjust for CPG Rules According to CPG rules, the taxable net estate may be further adjusted…

Q: Use the high-low method to develop a cost estimating equation for total manufacturing costs driven…

A: Step 1: Identify the Highest and Lowest Activity LevelsFrom the given data, we identify the highest…

Q: Right answer with explanation

A: Explanation of Land: Land is a tangible fixed asset that represents the cost of acquiring property…

Q: Financial Accounting

A: Step 1: Identifying Variable and Fixed ComponentsSales:Total Sales = 116,100 units * $123/unit =…

Q: General Accounting Question please solve

A: Step 1: Define Cost DriversThe identification of appropriate cost drivers is critical in estimating…

Q: Ash Merchandising Company expects to purchase $86,000 of materials in July and $118,000 of materials…

A: Explanation of Materials Purchases: Materials purchases refer to the acquisition of raw materials or…

Q: Give true answer please not use ai

A: The annual rate of interest can be computed using the present value of a perpetuity formula. PV =…

Q: Solve these accounting issue

A: In order to accurately determine Bellfont's production cost per door stopper for September, we must…

Q: Annenbaum Corporation uses the weighted-average method in its process costing system. This month,…

A: Units Completed and Transferred Out: 7,900 units were transferred out, and they are 100% complete…

Q: Select the accurate answer to this accounting MCQ

A: Explanation of Diluted EPS: Diluted Earnings Per Share is a financial metric that measures a…

Q: Which of the following is a characteristic of a perpetual inventory system? a) Inventory records are…

A: Explanation of Perpetual Inventory System: A perpetual inventory system is a method of tracking…

Q: Garlington Technologies Inc.'s 2019 financial statements are shown below: Income Statement for…

A: ExplanationsGiven information:Sales increase to $4.6 million in 2020.Dividends increase to…

Q: Green Valley Company prepared the following trial balance at the end of its first year of operations…

A: Approach to solving the question: For better clarity of the solution, I have attached the Excel…

Q: Current Asset

A: The quick ratio (also known as the acid-test ratio) is a financial metric used to assess a company's…

Q: Alec, Daniel, William, and Stephen decide today to save for retirement. Each person wants to retire…

A: Part 1: Retirement Savings (Top Section)Alec, Daniel, William, and Stephen each want to save money…

Q: solve c

A: Step 1: Present value of the lease payments=$37,231 Calculation of interest Expenses: Interest…

Q: Determined primarily by?

A: The functional currency is the currency of the primary economic environment in which a company…

Q: Accounting Problem-Provide Answer

A: Manufacturing overhead allocated for the year = Overhead rate per hour × Actual machine…

Q: Blossom Company, a machinery dealer, leased a machine to Crane Corporation on January 1, 2025. The…

A: Part (a): The Present Value from the table is 6.58238.Amount of the Lease Receivable = Annual…

Q: Can you please solve this accounting question?

A: Step 1: Define OverheadOverhead is a manufacturing cost that are incurred not directly attributable…

Q: Accounting tip top corp produces a product

A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Q: Answer want

A: Explanation of Total Income: Total income, also known as gross income, is the total amount of money…

Q: Give true solution for this accounting question

A: Step 1: Define Standard CostingStandard costing is used to estimate targets for revenues and…

Q: find true solution

A: The Gross Profit Percentage measures the proportion of sales revenue that exceeds the cost of goods…

Q: Brush Company engaged in the following transactions at the beginning of Year 7: a. Purchased a…

A: In transaction a, Brush Company purchased a patent for $70,000. This patent is an intangible asset…

Q: Ans the Question below

A: Impact of Debt Covenants on Financial StatementsDebt covenants are restrictions or conditions set by…

Q: The installment method of revenue recognition is primarily used for: a) Service contracts b)…

A: The installment method of revenue recognition is basically applied to long term sales since it gives…

Q: Wolverine World Wide, Incorporated, designs, markets, and licenses casual, industrial, performance…

A: Let's analyze each transaction and determine its effect on the balance sheet and income statement.a.…

Q: Question: 5-13 PLAST Enterprises started the period with 65 units in beginning inventory that cost…

A: Explanation of Beginning Inventory: Beginning inventory represents the quantity and cost of goods a…

Q: Please need help these general accounting question

A: Step 1:- Introduction to the Under applied and Over applied OverheadsIf actual overhead is greater…

Q: Reich Manufacturing company....

A: Step 1: Define Work-In-Process InventoryThe company's Work-In-Process Inventory is reported as a…

Q: Axtell Corporation has the following taxable income: U.S. source income $ 1,620,000 Foreign…

A: Step 1: Calculating U.S. TaxIdentify the taxable income: Axtell's U.S. taxable income is…

Q: Give me answer

A: The functional currency of a foreign operation is determined primarily by identifying the currency…

Q: Provide solution this accounting question

A: Step 1:Break even is the point at which cost and income are equal and there is neither profit nor…

Q: Provide correct solution

A: Step 1: Define Accounts Receivable Turnover RatioIt is a financial ratio that calculates how many…

Q: Financial Accounting

A: Explanation of Constructive Obligation: A constructive obligation is a duty or responsibility that…

Q: Helppp

A: Accounting Treatment for Defined Benefit Plans1. Recognition of Pension Obligation:Defined benefit…

Q: Skoff Corporation is a shipping container refurbishment company that measures its output by the…

A: Step 1: Activity Variances are the difference in revenues and expenses due to the difference in the…

Q: On January 1 of this year, Skamania Company completed the following transactions (assume a 8% annual…

A: see above.

Q: Mc Graw Hill סוי M Question 9 - Week 11 - Homework #7 (100 points) - Connect Week 11 - Homework #7…

A: Step 1: Initial entry Debit Prepaid rent to increase its balance by $12,000.Debit Cash to decrease…

Q: Financial Accounting

A: Step 1: Define Price-Earnings RatioThe ratio of the market price per share relative to the earnings…

Q: Give answer in detailed of below General Accounting Question

A: Explanation of Accounting Estimate: An accounting estimate is a reasonable approximation of a…

Q: Want answer to this financial accounting Question

A: Explanation: The gain or loss on sale of office furniture can be calculated by comparing the sale…

Q: Ans proper

A: A compound financial instrument is one that has both a debt (liability) and an equity component,…

Q: Give me answer

A: Explanation of Absorption Costing: Absorption costing is a method that includes all manufacturing…

Q: What is the actual cost per yard of fabric purchased on this accounting question?

A: Step 1:- Introduction to the VarianceA variance occurs when the standard and actual costs differ…

Question

Need help

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

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Calculate the variable rate
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
I need answer of this question
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 $3,002 15,174 April 2,664 9,624 May 2,823 12,276 June 3,621 17,777 a.$1.17 b.$0.70 c.$0.66 d.$0.12
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
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 to the nearest cent. Cost Machine Hours March $3,139 14,709 April 2,650 9,989 May 2,817 12,342 June 3,656 17,720 a. $0.74 b. $0.13 c. $1.43 d. $0.78
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
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. March April May June Cost $3,100 2,700 2,900 3,600 Machine Hours 15.000 10,000 12,000 18,000
The controller of Cullumber Production has collected the following monthly cost data for analyzing the behavior of electricity costs. January February March April May June July August September October November December (a) Total Total Electricity Costs Machine Hours $2,480 2,900 Total fixed costs 3.520 4,780 3,220 5,000 4,090 3,810 5.110 4,270 3,320 5,840 Variable cost per machine hour $ 210 $ 340 500 685 420 750 650 510 Determine the fixed costs and unit variable costs using the high-low method. 675 600 340 770
Given the following cost and activity observations for George Company’s utilities, use the high-low method to determine George’s variable utilities cost per machine hour. Cost Machine Hours May $16,500 105,000 June 18,000 120,000 July 16,000 100,000 August 17,500 117,000 a. $10.00 b. $0.10 c. $100.00 d. $1.00
General accounting Need help