CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Electricity Cost Direct Labor Hours 1,500 1,700 2,000 1,600 Month January April July October P6,750 7,500 8,500 7,250 Required: Determine the following using the high-low method. a. Variable cost per hour b. Fixed Cost c. Costequation/function d. How much is the total cost with 2,200 labor hours?
CLASS ACTIVITY:CASE PROBLEM The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Electricity Cost Direct Labor Hours 1,500 1,700 2,000 1,600 Month January April July October P6,750 7,500 8,500 7,250 Required: Determine the following using the high-low method. a. Variable cost per hour b. Fixed Cost c. Costequation/function d. How much is the total cost with 2,200 labor hours?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....
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![CLASS ACTIVITY:CASE PROBLEM
The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the
following data:
Month
Electricity Cost
Direct Labor
January
April
July
October
P6,750
7,500
8,500
7,250
Hours
1,500
1,700
2,000
1,600
Required: Determine the following using the high-low method.
a. Variable cost per hour
b. Fixed Cost
Cost equation/function
d. How much is the total cost with 2,200 labor hours?
C.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b593ff6-4fea-4908-8ea1-70906f2fb8a3%2F7607e9b7-07a4-4111-a138-29574d638f34%2F4jmfcj7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:CLASS ACTIVITY:CASE PROBLEM
The Overland Company wants to develop a cost estimating equation for its monthly cost of electricity. It has the
following data:
Month
Electricity Cost
Direct Labor
January
April
July
October
P6,750
7,500
8,500
7,250
Hours
1,500
1,700
2,000
1,600
Required: Determine the following using the high-low method.
a. Variable cost per hour
b. Fixed Cost
Cost equation/function
d. How much is the total cost with 2,200 labor hours?
C.
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