David Harper, a manager of Pet Oasis Inc., was reviewing the water bills of the pet grooming centre. He determined that its highest and lowest bills of $4,500 and $2,700 were incurred in the months of July and January, respectively. If 500 pets were groomed in July and 250 pets were groomed in January, what was the variable cost per pet associated with the company's water bill?

David Harper, a manager of Pet Oasis Inc., was reviewing the water bills of the pet grooming centre. He determined that its highest and lowest bills of $4,500 and $2,700 were incurred in the months of July and January, respectively. If 500 pets were groomed in July and 250 pets were groomed in January, what was the variable cost per pet associated with the company's water bill?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 2CE: Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients....

See similar textbooks

Similar questions

Can answer the question?
Ron Moss, a manager of Waterworks Inc., was reviewing the water bills of a dog daycare and spa. He determined that its highest and lowest bills of $3,800 and $2,400 were incurred in the months of May and November, respectively. If 400 dogs were washed in May and 200 dogs were washed in November, what was the estimated cost, If 500 dogs were washed in December? Group of answer choices are listed below: $ 3,735 $3,573 $3,100 $2,500
Tucker Pup’s Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a.Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
Tucker Pup's Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a. Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
What was the variable cost per dog associated with zarena's water bill? General accounting
Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery because maintenance costs for the previous fiscal year were higher than he expected. The owner has asked you to assist in estimating future maintenance costs to better predict the firm's profitability. Together, you have determined that the best cost driver for maintenance costs is machine hours. The data from the previous fiscal year for maintenance costs and machine hours follow: Month Maintenance Costs Machine Hours $ 2,665 2,710 2,760 1 2 3 4 6 7 8 9 10 11 12 2,860 2,895 Maintenance cost 3,045 2,905 2,945 2,820 2,610 2,630 2,930 1,566 1,670 1,685 1,735 1,855 1,890 1,865 1,885 1,775 1,450 1,630 1,465 Required: 1. Use the high-low method to estimate the fixed and variable portions for maintenance costs. (In your calculations, round "slope (unit variable cost)" to 4 decimal places. Enter the…
Horton Manufacturing Incorporated produces blinds and other window treatments for residential homes and offices. The owner is concerned about the maintenance costs for the production machinery because maintenance costs for the previous fiscal year were higher than he expected. The owner has asked you to assist in estimating future maintenance costs to better predict the firm's profitability. Together, you have determined that the best cost driver for maintenance costs is machine hours. The data from the previous fiscal year for maintenance costs and machine hours follow: Month Maintenance Costs Machine Hours $ 2,695 2,740 2,790 2,890 2,925 3,025 2,935 1 2 3 4 56789012 10 11 2,975 2,850 2,640 2,660 2,960 Maintenance cost 1,620 1,730 1,745 1,795 1,790 1,890 1,810 1,845 1,835 1,480 1,690 1,495 Required: 1. Use the high-low method to estimate the fixed and variable portions for maintenance costs. (In your calculations, round "slope (uni variable cost)" to 4 decimal places. Enter the "slope…
Skittles Pet store provides a dog wash service. Its highest and lowest bills of $3800 and $2400 were incurred in the months of May and November, respectively. If 500 dogs were washed in May and 100 dogs were washed in November what was the fixed cost associated with the company's water bill? (Round any intermediate calculations. to the nearest cent and your final answer to the nearest dollar.) O $3800 O $1400 O $2050 O $2400 Next► - Previous
The Palmer School of Business operates a transportation service, solely for the purpose of providing commuting services to off-campus students. You have been hired as accounting students to analyze the cost of providing the transportation services and to develop a cost function which describes the behaviour of the related costs. The schools' administration has assembled the data for a twelve-month period pertaining to the monthly total costs of providing the service and the corresponding number of students who used the transportation system each month. You were recently taught how to use the Excel graphing tool, and a member of the team successfully generated the scattergram given below from the data set provided. Total Transportation Costs PALMER SCHOOL OF BUSINESS SCATTER DIAGRAM 300,000 250,000 200,000 130,000 100,000 50,000 500 1,000 1,500 # of Students Line of Best Fit 2,000 2,500 3,000 The other team members are now tasked to use the graph to provide the administrators with a…
Vishnu
The manager of the main laboratory facility at UrbanFit Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed I that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 3,500 lab tests are performed next month. Let's begin by determining the formula that is used to calculate the variable cost (slope). Data table Variable cost (slope) Number of Lab Month Tests Performed Total Laboratory Overhead Costs January 2,800 $21,500 February 2,600 $22,700 March 3,100 $27,900 April.... 3,550 $31,400 May 3,700 $28,500 June.. 1,200 $19,500 July 1,400 $14,500 Print Done X
Accounting