The following six months of data were collected for electricity cost and the number of barista hours worked in a coffeehouse:MonthElectricity costBarista hoursJanuary$130,3001,100February145,5001,395March125,2501,050April150,2501,550May135,7501,240June148,2001,450Required:A. Using the high-low method, compute the variable cost rate for electricity..per machine hourB. Using the high-tow method, compute the total fixed cost for electricity,C. Estimate July's total electricity cost if baristas are expected to work a total of1.400 hours in July.Submit TeAll work saved.

The cost function = Y=A+BX Where, A = Fixed Cost B = Variable Cost per machine hour

Required: A. Using the high-low method, compute the variable cost rate for electricity. per machine hour B. Using the high-tow method, compute the total fixed cost for electricity, C. Estimate July's total electricity cost if baristas are expected to work a total of1, 400 hours in July.

Required: A. Using the high-low method, compute the variable cost rate for electricity. per machine hour B. Using the high-tow method, compute the total fixed cost for electricity, C. Estimate July's total electricity cost if baristas are expected to work a total of1, 400 hours in July.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

The following six months of data were collected for electricity cost and the number of barista hours worked in a coffeehouse:
Month
Electricity cost
Barista hours
January
$130,300
1,100
February
145,500
1,395
March
125,250
1,050
April
150,250
1,550
May
135,750
1,240
June
148,200
1,450
Required:
A. Using the high-low method, compute the variable cost rate for electricity..
per machine hour
B. Using the high-tow method, compute the total fixed cost for electricity,
C. Estimate July's total electricity cost if baristas are expected to work a total of1.400 hours in July.
Submit Te
All work saved.

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