Delivery Dudes Services has the collected the following information about operating expenditures for its delivery trucks for the past five years: Year Miles Operating costs 2019 45,000 $185,000 2020 60,000 $200,000 2021 40,000 $170,000 2022 55,000 $195,000 2023 75,000 $215,150 Using the high-low method, what is the estimated fixed cost for 2024 at an activity level of 50,000 miles? a. $123,200. b. $152,200. c. $134,600. d. $118,400.

Delivery Dudes Services has the collected the following information about operating expenditures for its delivery trucks for the past five years: Year Miles Operating costs 2019 45,000 $185,000 2020 60,000 $200,000 2021 40,000 $170,000 2022 55,000 $195,000 2023 75,000 $215,150 Using the high-low method, what is the estimated fixed cost for 2024 at an activity level of 50,000 miles? a. $123,200. b. $152,200. c. $134,600. d. $118,400.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

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Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
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Buckeye Company has provided the following data for maintenance costs: Prior Year Current Year Machine hours 19,100 22,200 Maintenance cost $30,500 $34,220 Required: The best estimate of the cost formula for maintenance would be: (Do not round intermediate calculations. Round your Variable cost per unit to 2 decimal places.) a) $7,580 per year plus $.833 per machine hour. b) $26,640 per year plus $.833 per machine hour. c) $7,580 per year plus $1.20 per machine hour. d) $30,500 per year plus $1.20 per machine hour.