Homework Help is Here – Start Your Trial Now!
Business
Accounting
n, Inc. uses the high-low method to analyze cost behavior. The company observed that at 17,000 machine hours of activity, total maintenance costs averaged $46.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $33.60.   On the basis of this information, the fixed cost for Swan was: (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount.)   Multiple Choice   $840,000.   $680,000.   $340,000.   $108,800.   $788,800.

n, Inc. uses the high-low method to analyze cost behavior. The company observed that at 17,000 machine hours of activity, total maintenance costs averaged $46.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $33.60.   On the basis of this information, the fixed cost for Swan was: (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount.)   Multiple Choice   $840,000.   $680,000.   $340,000.   $108,800.   $788,800.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

MC Qu. 6-66 Swan, Inc. uses the high-low method to...

Swan, Inc. uses the high-low method to analyze cost behavior. The company observed that at 17,000 machine hours of activity, total maintenance costs averaged $46.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $33.60.

 

On the basis of this information, the fixed cost for Swan was: (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount.)

 

Multiple Choice
  •  
    $840,000.
  •  

    $680,000.

  •  
    $340,000.
  •  
    $108,800.
  •  
    $788,800.
Expert Solution
trending now

Trending now

This is a popular solution!

video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost classification
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS