Rawabi Company incurred the following costs and machine hours during the last three months of the current year 2019: Type of cost 10 11 12 Electricity $22,000 $50,000 $12,000 Depreciation 16,000 16,000 10,000 Factory supplies 8,600 4,600 6,600 Property taxes 13,000 13,000 13,000 Machine hours 1,200 1,500 950 Instructions: Using the high-low method, construct a cost formula for electricity cost. If Rawabi had a total cost in January 2020 of $60,000, how many machine hours did they incur during January?
Rawabi Company incurred the following costs and machine hours during the last three months of the current year 2019: Type of cost 10 11 12 Electricity $22,000 $50,000 $12,000 Depreciation 16,000 16,000 10,000 Factory supplies 8,600 4,600 6,600 Property taxes 13,000 13,000 13,000 Machine hours 1,200 1,500 950 Instructions: Using the high-low method, construct a cost formula for electricity cost. If Rawabi had a total cost in January 2020 of $60,000, how many machine hours did they incur during January?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rawabi Company incurred the following costs and machine hours during the last three months of the current year 2019:
|
Type of cost |
10 |
11 |
12 |
|
Electricity |
$22,000 |
$50,000 |
$12,000 |
|
Depreciation |
16,000 |
16,000 |
10,000 |
|
Factory supplies |
8,600 |
4,600 |
6,600 |
|
Property taxes |
13,000 |
13,000 |
13,000 |
|
|
|
|
|
|
Machine hours |
1,200 |
1,500 |
950 |
Instructions:
- Using the high-low method, construct a cost formula for electricity cost.
- If Rawabi had a total cost in January 2020 of $60,000, how many machine hours did they incur during January?
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