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Martha's Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The company's controller, Mathew Knight, has recently completed a cost study of the firm's material-handling department in which he used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock. Knight compiled the following data. Month January February March April May June July August September October November December Units of Activity (hundreds of pounds of equipment loaded or unloaded) 2,800 2,600 2,500 4,000 3,200 3,400 3,800 3,600 2,400 2,700 3,000 3,200 Material-handling cost per month = Material Handling Department Costs + $24,870 24,310 23,730 29,000 26,040 27,200 Required: 5. Estimate the material-handling department's cost behavior using the high-low method. Use an equation to express the results of this estimation method. (Round coefficient of X to 2 decimal places.) 28,870 26,860 22,600 24,490 25,380 26,340

Martha's Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The company's controller, Mathew Knight, has recently completed a cost study of the firm's material-handling department in which he used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock. Knight compiled the following data. Month January February March April May June July August September October November December Units of Activity (hundreds of pounds of equipment loaded or unloaded) 2,800 2,600 2,500 4,000 3,200 3,400 3,800 3,600 2,400 2,700 3,000 3,200 Material-handling cost per month = Material Handling Department Costs + $24,870 24,310 23,730 29,000 26,040 27,200 Required: 5. Estimate the material-handling department's cost behavior using the high-low method. Use an equation to express the results of this estimation method. (Round coefficient of X to 2 decimal places.) 28,870 26,860 22,600 24,490 25,380 26,340

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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Problem 6-41 Work Measurement; Cost Estimation with Different Methods; Wholesaler (LO 6-1, 6-2, 6-5, 6-6) Martha's Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The company's controller, Mathew Knight, has recently completed a cost study of the firm's material-handling department in which he used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock. Knight compiled the following data. Month January February March April May June July August September October November December Units of Activity (hundreds of pounds of equipment loaded or unloaded) 2,800 2,600 2,500 4,000 3,200 3,400 3,800 3,600 2,400 2,700 3,000 3,200 Material-handling cost per month = Material Handling Department Costs Required: 5. Estimate the material-handling department's cost behavior using the high-low method. Use an equation to express the results of this estimation method. (Round coefficient of X to 2 decimal places.) + $24,870 24,310 23,730 29,000 26,040 27,200 28,870 26,860 22,600 24,490 25,380 26,340 EX
Transcribed Image Text:Problem 6-41 Work Measurement; Cost Estimation with Different Methods; Wholesaler (LO 6-1, 6-2, 6-5, 6-6) Martha's Vineyard Marine Supply is a wholesaler for a large variety of boating and fishing equipment. The company's controller, Mathew Knight, has recently completed a cost study of the firm's material-handling department in which he used work measurement to quantify the department's activity. The control factor unit used in the work-measurement study was hundreds of pounds of equipment unloaded or loaded at the company's loading dock. Knight compiled the following data. Month January February March April May June July August September October November December Units of Activity (hundreds of pounds of equipment loaded or unloaded) 2,800 2,600 2,500 4,000 3,200 3,400 3,800 3,600 2,400 2,700 3,000 3,200 Material-handling cost per month = Material Handling Department Costs Required: 5. Estimate the material-handling department's cost behavior using the high-low method. Use an equation to express the results of this estimation method. (Round coefficient of X to 2 decimal places.) + $24,870 24,310 23,730 29,000 26,040 27,200 28,870 26,860 22,600 24,490 25,380 26,340 EX
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