Glacier Equipment experienced a high level of activity in June, with 9,000 machine hours run and power costs totalling $4,500. In February, during a low activity month, only 3,000 machine hours were run, and power costs were $7,500. Using the high-low method, what is the estimated fixed cost element of power costs? a. $9,000 b. $6,000 C. $7,200 d. $5,400

Glacier Equipment experienced a high level of activity in June, with 9,000 machine hours run and power costs totalling $4,500. In February, during a low activity month, only 3,000 machine hours were run, and power costs were $7,500. Using the high-low method, what is the estimated fixed cost element of power costs? a. $9,000 b. $6,000 C. $7,200 d. $5,400

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter13: The Balanced Scorecard: Strategic-based Control

Section: Chapter Questions

Problem 8E: Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its...

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AT THE HIGH LEVEL OF ACTIVITY IN NOVEMBER, 10,300 MACHINE HOURS WERE RUN AND POWER COSTS WERE $20,600. IN APRIL, A MONTH OF LOW ACTIVITY, 3,800 MACHINE HOURS WERE RUN AND POWER COSTS AMOUNTED TO $8,000. USING THE HIGH-LOW METHOD, THE ESTIMATED FIXED COST ELEMENT OF POWER COSTS IS_____.
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The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 24,000 $ 282,400 Slowest month (December) 18,000 $ 220,000 If Macon expects to use 20,000 machine hours next month, what are the estimated direct labor costs?
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Machine hours in a month?