High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: Resource Forklift depreciation: High Indirect labor: Required: Fuel and oil for forklift: V Low F Y Low High Forklift depreciation: $ V Low High Indirect labor: Number of Moves 4,000 15,000 If required, round your answers to two decimal places. Enter a "0" if required. 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. 4,000 15,000 4,000 15,000 Total Cost $3,500 3,500 $61,000 105,000 $2,720 10,200
High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: Resource Forklift depreciation: High Indirect labor: Required: Fuel and oil for forklift: V Low F Y Low High Forklift depreciation: $ V Low High Indirect labor: Number of Moves 4,000 15,000 If required, round your answers to two decimal places. Enter a "0" if required. 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. 4,000 15,000 4,000 15,000 Total Cost $3,500 3,500 $61,000 105,000 $2,720 10,200
Chapter1: Financial Statements And Business Decisions
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High-Low Method, Cost Formulas
The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource
usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of
the three resources and the activity output, as measured by moves for the two different levels, are presented as follows:
Resource
Forklift depreciation:
Indirect labor:
Required:
V
Fuel and oil for forklift:
F
Y
Low
High
$
V
$
Low
$
High
Low
High
Indirect labor:
Number of Moves
4,000
15,000
4,000
15,000
If required, round your answers two decimal places. Enter a "0" if required.
1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components.
Forklift depreciation:
4,000
15,000
Total Cost
$3,500
3,500
$61,000
105,000
$2,720
10,200
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