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EX 6-25 (Algo) Estimating Cost Behavior; High-Low Method (LO 6-1, 6-2, 6-5) Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Month January February March April May June July August September October November December Pints of Applesauce Produced Required 1 35,900 21,900 22,900 Required 2 24,900 30,900 32,900 40,900 30,900 30,900 28,900 41,900 39,900 Energy Cost $ 24,300 23,000 22,900 23,350 23,800 24,250 28,900 23,700 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y=a+ bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 35,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. 23,900 23,600 25,000 25,850 Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bx, where Y denotes energy cost for a month and X denotes pints of applesauce produced. Note: Round coefficient of X to 2 decimal places. Total energy cost = Required 1 Required 2 >

EX 6-25 (Algo) Estimating Cost Behavior; High-Low Method (LO 6-1, 6-2, 6-5) Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Month January February March April May June July August September October November December Pints of Applesauce Produced Required 1 35,900 21,900 22,900 Required 2 24,900 30,900 32,900 40,900 30,900 30,900 28,900 41,900 39,900 Energy Cost $ 24,300 23,000 22,900 23,350 23,800 24,250 28,900 23,700 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y=a+ bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 35,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. 23,900 23,600 25,000 25,850 Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bx, where Y denotes energy cost for a month and X denotes pints of applesauce produced. Note: Round coefficient of X to 2 decimal places. Total energy cost = Required 1 Required 2 >

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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EX 6-25 (Algo) Estimating Cost Behavior; High-Low Method (LO 6-1, 6-2, 6-5) Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Month January February March April May June July August September October November December Pints of Applesauce Produced Required 1 Required 2 35,900 21,900 22,900 24,900 30,900 32,900 40,900 30,900 30,900 28,900 41,900 39,900 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y= a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 35,000 pints of applesauce are produced. Total energy cost = Energy Cost $ 24,300 23,000 22,900 23,350 23,800 24,250 28,900 23,700 23,900 23,600 25,000 25,850 Complete this question by entering your answers in the tabs below. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bx, where Y denotes energy cost for a month and X denotes pints of applesauce produced. Note: Round coefficient of X to 2 decimal places. < Required 1 Required 2 >
Transcribed Image Text:EX 6-25 (Algo) Estimating Cost Behavior; High-Low Method (LO 6-1, 6-2, 6-5) Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Month January February March April May June July August September October November December Pints of Applesauce Produced Required 1 Required 2 35,900 21,900 22,900 24,900 30,900 32,900 40,900 30,900 30,900 28,900 41,900 39,900 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y= a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 35,000 pints of applesauce are produced. Total energy cost = Energy Cost $ 24,300 23,000 22,900 23,350 23,800 24,250 28,900 23,700 23,900 23,600 25,000 25,850 Complete this question by entering your answers in the tabs below. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bx, where Y denotes energy cost for a month and X denotes pints of applesauce produced. Note: Round coefficient of X to 2 decimal places. < Required 1 Required 2 >
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