Crane Company accumulates the following data concerning a mixed cost, using miles as the activity level. Month Miles Driven Total Cost January 7,995 $14,180 February 7,505 13,502 March 8,510 14,909 April 8,200 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method.

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
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Problem 3P: Scattergraph method Using the data in P4-2 and a piece of graph paper: 1. Plot the data points on...
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Crane Company accumulates the following data concerning a
mixed cost, using miles as the activity level.
Month Miles Driven Total Cost
January 7,995
$14,180
February 7,505
13,502
March 8,510
14,909
April
8,200
14,495
a. Compute the variable cost per mile using the high-low
method.
b. Compute the fixed cost elements using the high-low
method.
Transcribed Image Text:Crane Company accumulates the following data concerning a mixed cost, using miles as the activity level. Month Miles Driven Total Cost January 7,995 $14,180 February 7,505 13,502 March 8,510 14,909 April 8,200 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method.
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