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Given the following cost and activity observations for Morrison Manufacturing's electricity expenses, use the high-low method to calculate Morrison's fixed costs per month. Month Total Cost Machine Hours July August $34,720 $42,380 850 1,150 September $48,560 1,340 Using the high-low method, determine the variable cost per machine hour and the total fixed costs. Select the correct answer: a. $28.24 per machine hour and $10,716 respectively. b. $28.24 per machine hour and $30,800 respectively. c. $36.25 per machine hour and $10,716 respectively. d. $36.25 per machine hour and $30,800 respectively.

Given the following cost and activity observations for Morrison Manufacturing's electricity expenses, use the high-low method to calculate Morrison's fixed costs per month. Month Total Cost Machine Hours July August $34,720 $42,380 850 1,150 September $48,560 1,340 Using the high-low method, determine the variable cost per machine hour and the total fixed costs. Select the correct answer: a. $28.24 per machine hour and $10,716 respectively. b. $28.24 per machine hour and $30,800 respectively. c. $36.25 per machine hour and $10,716 respectively. d. $36.25 per machine hour and $30,800 respectively.

FINANCIAL ACCOUNTING
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 cost and activity observations for Morrison Manufacturing's electricity expenses, use the high-low method to calculate Morrison's fixed costs per month. Month Total Cost Machine Hours July August $34,720 $42,380 850 1,150 September $48,560 1,340 Using the high-low method, determine the variable cost per machine hour and the total fixed costs. Select the correct answer: a. $28.24 per machine hour and $10,716 respectively. b. $28.24 per machine hour and $30,800 respectively. c. $36.25 per machine hour and $10,716 respectively. d. $36.25 per machine hour and $30,800 respectively.
Transcribed Image Text:Given the following cost and activity observations for Morrison Manufacturing's electricity expenses, use the high-low method to calculate Morrison's fixed costs per month. Month Total Cost Machine Hours July August $34,720 $42,380 850 1,150 September $48,560 1,340 Using the high-low method, determine the variable cost per machine hour and the total fixed costs. Select the correct answer: a. $28.24 per machine hour and $10,716 respectively. b. $28.24 per machine hour and $30,800 respectively. c. $36.25 per machine hour and $10,716 respectively. d. $36.25 per machine hour and $30,800 respectively.
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