variable cost per machine hours? Elite Manufacturing Company recorded the following costs and machine hours over threemonths:MonthJanuaryTotal Cost$ 8,000Machine Hours10,000February$ 9,50012,500March$7,5009,500Use the high-low method to calculate Elite Manufacturing's variable cost per machinehour.

Step 1: Definition of High-Low MethodThe high-low method is used to estimate variable and fixed…

Answered: Elite Manufacturing Company recorded…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...

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Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
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Elite Manufacturing Company recorded the following costs and machine hours over three months: Month January Total Cost $ 8,000 Machine Hours 10,000 February $ 9,500 12,500 March $7,500 9,500 Use the high-low method to calculate Elite Manufacturing's variable cost per machine hour.