Copper Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year. Month Cost Hours January $ 4,605 390 February $ 4,915 490 March $ 5,630 640 April $ 4,575 290 May $ 5,955 980 June $ 5,320 590 What is the estimated total cost at an operating level of 330 hours?
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Copper Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.
| Month | Cost | Hours |
|---|---|---|
| January | $ 4,605 | 390 |
| February | $ 4,915 | 490 |
| March | $ 5,630 | 640 |
| April | $ 4,575 | 290 |
| May | $ 5,955 | 980 |
| June | $ 5,320 | 590 |
What is the estimated total cost at an operating level of 330 hours?
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$4,655.00.
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$5,055.20.
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$4,455.65.
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$5,145.00.
-
$4,615.00.
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