PT AAA is a company engaged in the manufacture of shoes. During 2024, there was a high increase in electricity costs. To save costs, management wants to know whether the factory's electricity costs are affected by the length of hours the shoe-making machine is produced. The data collected by management during 2024 is ELECTRICITY MONTH MACHINE CLOCK COST January $ 480 2,100 February $ 450 1,800 March $ 435 1,900 April $ 485 2,200 May $ 470 2,100 June $ 475 2,000 July $ 400 1,200 August $ 450 1,900 September $ 435 1,800 October $ 600 3,000 November $ 495 2,300 December $ 470 2,200 REQUESTED: 1. Determine the electricity cost function, if the company uses the high-low method! 2. Determine the total electricity cost if in January 2025 there is an Activity Level of 2,000 Machine Hours!

PT AAA is a company engaged in the manufacture of shoes. During 2024, there was a high increase in electricity costs. To save costs, management wants to know whether the factory's electricity costs are affected by the length of hours the shoe-making machine is produced. The data collected by management during 2024 is ELECTRICITY MONTH MACHINE CLOCK COST January $ 480 2,100 February $ 450 1,800 March $ 435 1,900 April $ 485 2,200 May $ 470 2,100 June $ 475 2,000 July $ 400 1,200 August $ 450 1,900 September $ 435 1,800 October $ 600 3,000 November $ 495 2,300 December $ 470 2,200 REQUESTED: 1. Determine the electricity cost function, if the company uses the high-low method! 2. Determine the total electricity cost if in January 2025 there is an Activity Level of 2,000 Machine Hours!

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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