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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 Month Worked Utilities Cost April Мay 5,650 5,200 7,500 9,000 10,060 9,940 11,725 13,400 June July 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. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount. A. Variable cost per hour 2$ 0.91 Fixed cost $ 4,355 B. Total variable cost Total fixed cost Total 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 Month Worked Utilities Cost April Мay 5,650 5,200 7,500 9,000 10,060 9,940 11,725 13,400 June July 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. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount. A. Variable cost per hour 2$ 0.91 Fixed cost $ 4,355 B. Total variable cost Total fixed cost Total utilities cost for August

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Could you please answer B section Total variable cost, Total fixed cost and for the total auagust 

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 Month Worked Utilities Cost April Маy 5,650 5,200 7,500 9,000 10,060 9,940 11,725 13,400 June July 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. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount. A. Variable cost per hour 0.91 Fixed cost $ 4,355 B. Total variable cost Total fixed cost Total utilities cost for August
Transcribed Image Text: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 Month Worked Utilities Cost April Маy 5,650 5,200 7,500 9,000 10,060 9,940 11,725 13,400 June July 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. For all requirements, round "variable cost per hour" to 2 decimal places and final answers to the nearest dollar amount. A. Variable cost per hour 0.91 Fixed cost $ 4,355 B. Total variable cost Total fixed cost Total utilities cost for August
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