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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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