Financial Accounting [5 points] At the high level of activity in August, 8,000 machine hours were run, and power costs amounted to $22,000. In February, a month of low activity, 3,000 machine hours were run, and power costs totaled $12,000. Using the high-low method, what is the estimated fixed cost element of power costs?

Financial Accounting [5 points] At the high level of activity in August, 8,000 machine hours were run, and power costs amounted to $22,000. In February, a month of low activity, 3,000 machine hours were run, and power costs totaled $12,000. Using the high-low method, what is the estimated fixed cost element of power costs?

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:...

See similar textbooks

Similar questions

The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost
What is the estimated fixed cost element of power costs ???
Using the high-low method
Sub. General accounting
What is the estimated fixed cost element of power costs?
Solve with explanation accounting
Please provide this question solution general accounting
Financial Accounting
At the high level of activity in November solution this question?
Please solve this problem
Please given answer