Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month. Cost Machine Hours January $81,820 9,600 February 144,460 18,300 March 103,080 12,500 April a. $21,600 b. $40,600 c. $10,200 d. $12,700 120,230 14,900
Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smithson's fixed costs per month. Cost Machine Hours January $81,820 9,600 February 144,460 18,300 March 103,080 12,500 April a. $21,600 b. $40,600 c. $10,200 d. $12,700 120,230 14,900
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 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Transcribed Image Text:Given the following cost and activity observations for Smithson
Company's utilities, use the high-low method to calculate Smithson's
fixed costs per month.
Cost
Machine Hours
January $81,820 9,600
February 144,460 18,300
March 103,080 12,500
April
a. $21,600
b. $40,600
c. $10,200
d. $12,700
120,230 14,900
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