Morgan Corporation accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost July 12,000 16,000 August 8000 14,500 Sept 9,000 11,500 Oct 6000 12000 Instructions: Compute the variable and fixed cost elements using the high-low method.

Morgan Corporation accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost July 12,000 16,000 August 8000 14,500 Sept 9,000 11,500 Oct 6000 12000 Instructions: Compute the variable and fixed cost elements using the high-low method.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 4E: Using the data in E4-2 and spreadsheet software, determine: The variable cost per unit, the total...

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Question

Compute the variable and fixed cost elements

Morgan Corporation accumulates the following data concerning
a mixed cost, using miles as the activity level.
Miles Driven Total Cost
July 12,000
16,000
August 8000
14,500
Sept
9,000
11,500
Oct
6000
12000
Instructions:
Compute the variable and fixed cost elements using the high-low
method.

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The variable and fixed cost elements using the high low method