Coastal Dental Care is a specialized dental practice whose only service is whitening teeth. Coastal has recorded the following for the past nine months: Month Number of Teeth Whitened Total Cost January 300 February 250 March 550 April 600 May 350 June 400 July 450 August 225 September 375 $4,200 $3,800 $6,200 $6,500 $4,500 $5,200 $5,700 $3,600 $4,700 1. Use the high-low method to estimate total fixed cost and variable cost per whitening. (Round your answers to 2 decimal places.) 2. Using these estimates, calculate Coastal's total cost for whitening 700 teeth.

Coastal Dental Care is a specialized dental practice whose only service is whitening teeth. Coastal has recorded the following for the past nine months: Month Number of Teeth Whitened Total Cost January 300 February 250 March 550 April 600 May 350 June 400 July 450 August 225 September 375 $4,200 $3,800 $6,200 $6,500 $4,500 $5,200 $5,700 $3,600 $4,700 1. Use the high-low method to estimate total fixed cost and variable cost per whitening. (Round your answers to 2 decimal places.) 2. Using these estimates, calculate Coastal's total cost for whitening 700 teeth.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 27E: Alard Manufacturing Company has a billing department staffed by four billing clerks. Each clerk is...

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Question: A Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Total Cost Total Activity $500,000 5,000 deliveries Manual order processing (Number of manual orders)…
Question: C Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies. For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic…