9.3.exercise )uagement.Problem 1Rosanna Di Magiba Ltd recorded the following costs for the past six months:Using High-Low Method and Least Square Method.MonthTotal costActivity levelUnits (000)K'0001406,586305,826366,2824386,396426,700336,052Required:a. Estimate the fixed cost per monthb. Estimate the total costs for the following activity levels in a month75units90 unitsProblem 2Meng Company is preparing a flexible budget for the next year and requir

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Description: 9.3.exercise )uagement.Problem 1Rosanna Di Magiba Ltd recorded the following costs for the past six months:Using High-Low Method and Least Square Method.MonthTotal costActivity levelUnits (000)K'0001406,586305,826366,2824386,396426,700336,052Require

Under the high low method, cost at lowest level of activity and highest level of activity are…

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equired: Estimate the fixed cost per month Estimate the total costs for the following activity levels in 75 units 90 units

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50
III. NadasellsorangejuiceforOMR1.00pergallon.ThevariablecostperunitisOMR0.80,andthefixed costs per month are OMR 1,000. You are required to;A) Calculate the total costs if Nada produces 10,000 units? B)Calculate the total profit earned by Nada if they produce and sell 10,000 units?
b) The following graph is given as an example of the cost characteristic of a variable cost: £ cost Activity (i.e. output or usage) REQUIRED: Prepare a graph for each of the following situations (NOTE: The shape of the graphs is more important than their detailed scaling): i) Rates of the factory premises for half a year costing £50,000. ii) The company telephone account comprising of a quarterly charge of £100 and a cost per call of £0.40. iii) A quantity discount agreement: 5% discount when the monthly order exceeds £2,000 10% discount when the monthly order exceeds £5,000 20% discount when the monthly order exceeds £10,000 A car hire agreement whereby there is: A minimum weekly charge of £50 A charge per mile of £0.10 iv) A maximum weekly charge of £100 v) A labour rate of £1.00 per piece produced in normal time and £1.30 in overtime. vi) Depreciation on Reducing Balance Method vii) A salesman's salary of £1,000 per month with a bonus of 20% if the sales target is achieved.
Solve for the cost line equation using the high-low method: \table[[Month, Units Produced,Total Cost], [1,4,500,$ 38,000
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Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost Machine Hours January $26,300 10,200 February 36,000 18,300 March 28,900 11,700 April 30,100 15,500 Oa. $23,946 Оb. SI1,269 Oc. S45,075 Od. $14,086 Previous Next Submit Test for Grading Reflector-3.2.1.dmg Show All reen Shot 202..png Canceled
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Determine fixed and variable costs using the high-low method and prepare graph. E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs. Total Maintenance Costs Total Machine Hours Month January February March April May June $2,500 3,000 3,600 4,500 3,200 4,900 300 350 500 690 400 700 Instructions a. Determine the fixed and variable cost components using the high-low method. b. Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 cost increments.
Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. September October November December a) £0.08 b) £4.86 c) £0.25 d) £12.50 Cost Machine Hours £4,100 22,000£3,700 18,000£3,900 19,000 £4,500 28,000
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Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost Machine Hours January $26,500 9,600 February 38,700 17,800 March 28,600 11,600 April 30,200 14,600 a.$9,774 b.$20,769 c.$39,094 d.$12,217
What is the high low method?