Maintenance Machine Health Number of Shipping Units Month Costs Hours Insurance Employees Costs Shipped January February $4,500 $4,452 8,600 $8,600 $8,600 $25,776 $29,664 165 68 7,160 120 75 8,240 $4,600 $4,850 $5,166 March 230 92 $28,674 7,965 April May 318 $8,600 105 $23,058 6,405 $8,600 $8,600 $21,294 5,915 9,245 460 89 June $4,760 280 87 $33,282 July August September $4,910 340 $8,600 93 $31,428 8,730 $4,960 360 $8,600 88 $30,294 8,415 $5,070 420 $8,600 95 $25,110 6,975 October $5,250 495 $8,600 102 $25,866 7,185 November $5,271 510 $8,600 97 $20,124 5,590 December $4,760 275 $8,600 94 S34,596 9,610 Required 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation. 4. Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.

Maintenance Machine Health Number of Shipping Units Month Costs Hours Insurance Employees Costs Shipped January February $4,500 $4,452 8,600 $8,600 $8,600 $25,776 $29,664 165 68 7,160 120 75 8,240 $4,600 $4,850 $5,166 March 230 92 $28,674 7,965 April May 318 $8,600 105 $23,058 6,405 $8,600 $8,600 $21,294 5,915 9,245 460 89 June $4,760 280 87 $33,282 July August September $4,910 340 $8,600 93 $31,428 8,730 $4,960 360 $8,600 88 $30,294 8,415 $5,070 420 $8,600 95 $25,110 6,975 October $5,250 495 $8,600 102 $25,866 7,185 November $5,271 510 $8,600 97 $20,124 5,590 December $4,760 275 $8,600 94 S34,596 9,610 Required 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. 2. Using the high-low method, determine the cost function for each cost. 3. Combine the preceding information to get a monthly operating cost function for the Stein Corporation. 4. Next month, Stein expects to use 400 machine hours, have 80 employees, and ship 9,000 units. Estimate the total operating cost for the month.

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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