**Albedo Incorporated** manufactures high-end replacement telescope lenses for amateur and professional astronomers looking to upgrade the performance of their telescopes. As a newly employed staff accountant at Albedo, you have been asked by the controller, Jordan Coleman, to assist in estimating maintenance costs for the lens manufacturing process. Machine hours are identified as the best cost driver for maintenance costs. Below is the data from the previous fiscal year concerning maintenance costs and machine hours:| **Month** | **Maintenance Costs** | **Machine Hours** ||-----------|-----------------------|-------------------|| 1 | $3,210 | 2,750 || 2 | $4,650 | 3,900 || 3 | $5,175 | 4,050 || 4 | $3,350 | 2,690 || 5 | $3,100 | 2,500 || 6 | $2,950 | 2,580 || 7 | $2,900 | 2,300 || 8 | $2,900 | 2,500 || 9 | $4,120 | 3,160 || 10 | $4,350 | 3,325 || 11 | $3,500 | 2,780 || 12 | $3,775 | 3,000 |### Required:1. What is the cost equation for maintenance costs using the high-low method? (Round "slope (unit variable cost)" to 2 decimal places. Negative amounts should be indicated by a minus sign.)**Explanation of Data Analysis:**The table presents monthly maintenance costs and machine hours over a fiscal year to help calculate the cost equation using the high-low method. This involves identifying the highest and lowest activity levels, calculating the variable cost per unit, and determining the total fixed costs to develop a cost equation. This method assumes a linear relationship between the activity level and costs.

VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Answered: Required: 1. What is the cost equation…

Required: 1. What is the cost equation for maintenance costs using the high-low method? (Round "slope (unit variable cost)" to 2 decimal places. Negative amounts should be indicated by a minus sign.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1. What is the difference between a product cost and a period cost? Give three examples of each.2. What is the difference between a direct cost and indirect cost? Give two examples of each.
What does it means when the Overhead rates in the direct method have a figure which is higher than step down method and another which is lower than step down method?
ASAP Kindly give a full explanation for each option why it is correct or why others are wrong 1 Both the equivalent units schedules and the physical flow are prerequisites to calculating the a) unit cost. b) cost reconciliation. c) weighted average. d) operating costs
please help me number it from 1-5
SITUATION2: Interpret the figure below: find (a) Present worth of all additional maintenance cost, (b) Present worth of all cost, (c) Equivalent uniform annual cost (EUAC). Note, EUAC is the sum of all expenses such as first cost, operation cost and other expenses. 0 12 3 4 5 6 7 8 9 10 11 12 Y ✓ 1.5 1.5 1.5 1.5 1,5 1.5 1.5 1.5 1.5.1,5 1.5 1.5 Initial cost: P20M Annual maintenance: P1.5M www 25 1,5 Additional Maintenance every 5 years: P3M Cost of money: 8.0%
Each incorrect answer cancels out each correcr one. Indicate which of the following statements are true(T) or false (F). Indirect costs are those factors whose increase or decrease is not related to changes in the activity, so that in the short term they must be considered fixed.Cost Accounting studies the resources or productive factors applied to production, so it requires data expressed in physical units (hours, Kilograms, liters etc...) in addition to their monetary value.The fuel consumed by commercial venicles must be assigned as indirect manufacturing cost. This is because it is not possible to do it directly. The warehousing costs refer to the set of activities related to the management of purchases and warehouses, and do not include the acquisition value of this materials.When 50.000 units are produced, the fixed cost is $10 per unit. Therefore, when 100.000 units are produced fixed costs will remain at $10 per unit.The budgeted allocation rate is calculated by dividing the…
The high-low method used in determining costs can be used to estimate the cost queation using just two points of reference True False
Time left 1:41:04 Which of the following statements related to CVP chart is not true? O a. To calculate the total fixed cost froma graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. O b. To determine the variable cost per unit from a graph, the change in cost is divided by the change in units. O c. The high-low method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. The slope of the total cost line determines the variable cost per unit. O e. None of the given answers. O f. The intercept between the total cost line on a graph and the y-axis determines variable cost. 14:18 search a 10) ENG 15-04-2021 delete home end num backspace lock home enter J K pause T shift 11 end ctrl
Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A. They will decrease as production decreases. B. They will remain the same as production levels change. C. They will increase as production increases. D. They will increase as production decreases.
Consider the following statements: (1) Total costs will equal the sum of fixed and variable costs. (2) Total costs will equal the sum of direct and indirect costs. Which of these statements is/are correct? A. 2 only OB. 1 only OC. Neither 1 nor 2 OD. 1 and 2
Please refer to the picture below: Find: 1. Using Direct Method, how much service costs will be allocated to P1?2. Using Direct Method, how much total service costs will be allocated to P2?3. Using Step Method (allocate S1 first), how much total service costs will be allocated to P1?4. Using Step Method (allocate S1 first), how much total service costs will be allocated to P2?
Which of the following statements related to CVP chart is not true? O a. None of the given answers. O b. To calculate the total fixed cost from a graph is by multiplying a level of volume by the variable cost per unit found out earlier and subtracting that from the total cost for that level of volume. Oc. The high-low method is a way to estimate the cost behavior by graphically connecting the two cost amounts identified with the highest and lowest volume levels. O d. To determine the variable cost per unit froma graph, the change in cost is divided by the change in units. O e. The slope of the total cost line determines the fixed cost per unit. Of. The intercept between the total cost line on a graph and the y axis determines the fixed cost. on Mazoon Company sells 500 units resulting in $300,000 of sales revenue, $100,000 of variable costs, and $36,000 of fixed costs. The number of units that must be sold to achieve $40,000 of operating income is: Fir F2 F3 F9 F10 F1 F4 F5 F6 F7 F8 23…