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

What is the estimated fixed cost element of power costs ???
Sub. General accounting
What is the estimated fixed cost element of power costs?
Give answer the question
??
Please solve this problem
Calculate the estimated total power ....
High low method?
Fix costs per month?
At the high level of activity in November solve this question
6. The Kentucky Tools Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month January April July October Cost of Electricity (Y) Direct Labor-Hours (X) $7,000 750 $7,500 850 $8,500 $7,250 1,000 800 What would be the best equation using the high-low method? A) Y = $2,000+ $7.50X B) Y= $2,500 + $6X C) Y= $1,500 + $8X D) Y = $2,000 + $6X
What are the estimated direct labor costs?