Provide answer Max Delivery Services applied the high-low method of costestimation to delivery data for the first four months of 2025. Whatis the estimated variable delivery cost component per delivery?Deliveries CostMonthJanuary 2,000$6,400February 2,500$7,250March 3,000$8,000April3,500$8,750

Explanation of Variable Costs:Variable costs are costs that change in direct proportion to the level…

Answered: Max Delivery Services applied the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...

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The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
H1.
Which of the preceding costs is variable? Fixed? Mixed? Explain.
The cost data for BC Billing Solutions for the year 2020 is as follows: A. Using the high-low method, express the company’s overtime wages as an equation wherexrepresents number of invoices processed. Assume BC has monthly fixed costs of $3,800. B. Predict the overtime wages if 9,000 invoices are processed. D. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
Recent IT costs incurred each month at the head office of Dawn Ltd are detailed below. Apply the high/low method to establish how the cost behave and then select the correct prediction of cost for a month in which 770 client projects will be completed by the company month Number of clients project IT cost (£) 1 730 £116150 2 800 £123000 3 625 £112500 4 790 £120980 a. £94,200 b. £121,200 c. £122,000 d. £119,780
Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs: Year Miles Operating Costs 2012 556,000 $182,000 2013 684,000 214,000 Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.) Total annual costs = $0 +$ 0
The Apollo Delivery Service has the following information about its truck fleet miles and operating costs Year 2018 2019 2020 Miles 500,000 600,000 700,000 Operating Costs $320,000 $370,000 $420,000 What is the best estimate of fixed costs for fleet operating expenses using the high-low method? $100,000 $370,000 $70,000 $200,000
Using 0 & 3,000 patient-days, variable cost per patient-day would be: a.$5.00 b.$10.00 c.$6.67 d.$7.17
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 4.009 $150 + $0.75q The company's planned level of activity was 2,110 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice C $7,840 $8,140 $8,340 $ 3,000 $8,440
Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000
Cullumber Company has the following information available for September 2020. Unit selling price of video game consoles $490 Unit variable costs $294 Total fixed costs $92,120 Units sold 600 Compute the unit contribution margin. Unit contribution margin enter the unit contribution margin Prepare a CVP income statement that shows both total and per unit amounts. CULLUMBER COMPANYCVP Income StatementFor the Month Ended September 30, 2020 Total Per Unit select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs $enter a dollar amount $enter a dollar amount select an income statement item Administrative ExpensesContribution MarginCost of Goods…
The following information is available regarding the total repair costs of Alexander Design Company for six months of 2022: Units Produced Repair Cost January 1,500 $15,875 February 1,750 $16,500 March 1,000 $11,250 April 1,250 $15,250 May 1,875 $17,750 June 2,250 $20,250 Using the least-square regression analysis on Excel, construct a cost formula. Run a regression analysis on the data above and provide your response to the following three questions. Round decimals to the nearest tenth (i.e, two decimal points). (1) Provide the regression output and construct a cost model. (2) According to the cost model, what is the estimated total fixed cost? (3) According to the cost model, what is the estimated variable cost per unit?

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Max Delivery Services applied the high-low method of cost estimation to delivery data for the first four months of 2025. What is the estimated variable delivery cost component per delivery? Deliveries Cost Month January 2,000 $6,400 February 2,500 $7,250 March 3,000 $8,000 April 3,500 $8,750