Dispatch Dynamics Services has collected the following information about operating expenditures for its delivery fleet for the past five years: Year Miles Operating costs 2019 38,000 $176,000 2020 52,000 $192,000 2021 43,000 $182,500 2022 58,000 $198,000 2023 67,000 $207,500 Using the high-low method, what is the estimated fixed cost for 2024 at an activity level of 55,000 miles?

Dispatch Dynamics Services has collected the following information about operating expenditures for its delivery fleet for the past five years: Year Miles Operating costs 2019 38,000 $176,000 2020 52,000 $192,000 2021 43,000 $182,500 2022 58,000 $198,000 2023 67,000 $207,500 Using the high-low method, what is the estimated fixed cost for 2024 at an activity level of 55,000 miles?

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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Really Fast Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2009 110,000 $390,000 2010 140,000 $420,000 2011 100,000 $360,000 2012 130,000 $410,000 2013 170,000 $450,000 What is the best estimate of total operating expenses for 2014 using the high- low method based on total expected miles of 120,000?
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