Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Machine Hours Worked 5,650 5,200 7,500 9,000 Month Utilities Cost April Мay June July 10,060 9,940 11,725 13,400 Lichtenstein anticipates producing 6,000 units in August, each unit requiring 2.5 hours of machine time. The company uses the high- low method to analyze costs. Required: A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August.
Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Machine Hours Worked 5,650 5,200 7,500 9,000 Month Utilities Cost April Мay June July 10,060 9,940 11,725 13,400 Lichtenstein anticipates producing 6,000 units in August, each unit requiring 2.5 hours of machine time. The company uses the high- low method to analyze costs. Required: A. Calculate the variable and fixed components of the utilities cost. B. Using the data calculated above, estimate the utilities cost for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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