Joha, an accountant for Jones, Inc., has decided to estimate the fixed and variable components associated with the company's repair activity. The following data for the past few months has been collected: Repair HoursTotal Repair Costs20$ 1,000251,250301,400401,550 Required:Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 10 hours are used.

The high low method is used to separate the mixed cost into variable cost per unit and fixed costs.

Answered: Joha, an accountant for Jones, Inc.,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Joha, an accountant for Jones, Inc., has decided to estimate the fixed and variable components associated with the company's repair activity. The following data for the past few months has been collected:

Repair Hours	Total Repair Costs
20	$ 1,000
25	1,250
30	1,400
40	1,550

Required:

Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 10 hours are used.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions