I am searching for the accurate solution to this general accounting problem with the right approach. Given the following cost and activity observations for Clearwater Manufacturing's electricitycosts:Month Cost Machine HoursJuly$4,850 6,200August$5,380 7,500September $4,210 4,800October $5,640 8,100Use the high-low method to calculate Clearwater's variable electricity cost per machine hour.a. S0.43b. $0.78c. $0.87d. $0.33

Step 1: Definition of Variable Cost Using the High-Low MethodThe high-low method is used to estimate…

Answered: Given the following cost and activity…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Given the following costs and activities for Downing Company electrical costs, use the high-low method to calculate Downing’s variable electrical costs per machine hour.
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,100 15,000 April 2,700 10,000 May 2,900 12,000 June 3,600 18,000 a.$10.00 b.$0.63 c.$0.11 d.$0.67
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
What is the correct option? General accounting question
Given the following cost and activity observations for George Company’s utilities, use the high-low method to determine George’s variable utilities cost per machine hour. Cost Machine Hours May $16,500 105,000 June 18,000 120,000 July 16,000 100,000 August 17,500 117,000 a. $10.00 b. $0.10 c. $100.00 d. $1.00
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. March April May June Cost $3,100 2,700 2,900 3,600 Machine Hours 15.000 10,000 12,000 18,000
Calculate the variable cost
The controller of Cullumber Production has collected the following monthly cost data for analyzing the behavior of electricity costs. January February March April May June July August September October November December (a) Total Total Electricity Costs Machine Hours $2,480 2,900 Total fixed costs 3.520 4,780 3,220 5,000 4,090 3,810 5.110 4,270 3,320 5,840 Variable cost per machine hour $ 210 $ 340 500 685 420 750 650 510 Determine the fixed costs and unit variable costs using the high-low method. 675 600 340 770
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The electricity costs and machine hours for a period of 6 months are as follows Hours CostsMonths machine electricityJanuary 2,000 $ 4,800February 2,500 $ 5,200March 3,000 $ 5,400April 2,400 $ 5,000May 2,800 $ 5,600June 2,200 $ 5,000Using the high-low method, what is the formula to use to determine electricity costs at different volumes of electricity hours? (Fixed cost + variable cost × volume). a. Electricity costs = $ 2,800 + ($ 1.00 x number of machine hours) b. Electricity costs = $ 2,600 + ($ 1.00 x number of machine hours) c. Electricity costs = $ 400 + ($ 1.67 x number of machine hours) d. Electricity costs = $ 3,600 + ($ .60 x number of machine hours)
Given the following cost and activity
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