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...

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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

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