correct answer please Identify the choice that best completes the statement or answers the question:6. Retleb Manufacturing Company noticed that, during its busiest month of2014, maintenance costs totaled $15,400, resulting from the production of32,000 units. During its slowest month, $12,600 in maintenance costs wereincurred, resulting from the production of 24,000 units. Use the high-lowmethod to estimate the maintenance cost that he company will incur if itproduces 20,000 units.a. $7,000b. $11,200c. $8,400d. $2,800

Step 1: Definition of the High-Low MethodThe High-Low Method is a cost estimation technique used to…

Answered: Identify the choice that best completes…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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The following data relate to the Lisle Company for May and August of the current year: May 25,000 $1,175,000 August 29,000 $1,247,000 Maintenance hours Maintenance cost May and August were the lowest and highest activity levels, and Lisle uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true? Select one: O a. Total maintenance costs will be $1,175,000. O b. Total maintenance costs will be $1,182,000. Oc. Total maintenance costs will be $1,193,000. O d. Total maintenance costs will be $1,221,000. e. Total maintenance costs will be $1,247,000. Clear my choice tion 23 Maintenance costs at a Tierce Corporation factory are listed below: yet vered Machine-Hours 3,658 Maintenance Cost $52,986 nts out of January February 3,613 $52,580 3,607 3,614 March $52,504 Flag April S52,585 w MacBook Air 20 >> F4 F5 F6 F7 F8 F9 F10 % & 4. 7 8 9. Y U R.
The Shapely Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Busiest month (June) Slowest (December) Machine Direct Labor Hours Costs 14,750 $770,000 month 9,750 $620,000 If Shapely expects to use 12,000 machine hours next month, what are the estimated direct labor costs? A) $687,500 B) $1,008,260 C) $510,000 D) $400,969.
Using the high-low method, estimate both the fixed and variable components of its maintenance cost.
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Pharoah Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 21,700 $43,397 August 38,560 57,840 September 43,380 66,275 October 26,510 45,790 November 48,200 89,772 December 45,790 74,710
139) At an activity level of 8,400 units in a month, Braughton Corporation's total variable. maintenance and repair cost is $697,284 and its total fixed maintenance and repai cost is $464,100. What would be the total maintenance and repair cost, both fixed and variable, at an activity level of 8.500 units in a month? Assume that this level of aetivity is within the relevant range. A) S1.175 210 B) $1.169.685 C) $1.161.384 D) $1.168.29 + Q 194 1 64
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?
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Hapza cleaning services has opening hours that fluctuate from month to month. The electricity costs and hours of operation for past six months is listed below: Month Total hours of operation Total electricity cost January 650 $ 4 240 February 700 $ 4 400 March 800 $ 4 800 April 600 $ 4 200 May 550 $ 3 700 June 500 $ 3 600 Required: (a) Use the high-low method to estimate the cost behaviour for the complex’s electricity costs, assuming that the variable costs vary in proportion to the hours of operation. Express the total cost behaviour in formula form (Y = a + bx). What is the variable electricity cost per hour of operation? (b) During July, the complex will open for 570 hours. Predict the complex’s total electricity costs for July using the cost estimation method employed in above requirement (a). (c) What is the main drawback of the high-low method of cost estimation?
Juan Company considers repairs and maintenance (R&M) to be a mixed cost. Over the past five months they've had the following R&M costs: Month Units Produced Total R&M cost February 400 $5, 680 March 350 $4, 800 April 870 $6, 900 May 300 $4, 890 June 800 $7,350 Using the High-Low method calculate the expected cost of R&M for July assuming they expect 1,000 units to be produced

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