Required information [The following information applies to the questions displayed below.] Travis Metals heats copper ingots to a high temperature by placing them in a large oven. The heated ingots are then r through a shaping machine that forms them into wire. Due to the length of time it takes the oven to heat up, it is never turned off. When the ingots are placed in the oven the temperature is raised to a higher level. Once they are done belir heated the oven temperature is turned back down until a new batch of ingots is ready to be heated. The following information shows the ingots processed and the power costs over the past 10 months. Month January February March April May June July August September October Ingots Power Cost 138 118 108 128 158 148 98 88 78 68 $6,620 $5,620 Total power costs $5,520 56,120 $7,120 $6,720 $5,120 $4,320 $4,520 $3,520 Required: 2. Using the high-low method, estimate a cost formula for power costs. Express the formula in the form Y=a+bX 3. Predict total power costs in a month when 168 ingots are processed.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Required information
[The following information applies to the questions displayed below.]
Travis Metals heats copper ingots to a high temperature by placing them in a large oven. The heated ingots are then run
through a shaping machine that forms them into wire. Due to the length of time it takes the oven to heat up, it is never
turned off. When the ingots are placed in the oven the temperature is raised to a higher level. Once they are done being
heated the oven temperature is turned back down until a new batch of ingots is ready to be heated. The following
information shows the ingots processed and the power costs over the past 10 months.
Month
January
February
March
April
May
June
July
August
September
October
Ingots Power Cost
135
118
108
128
158
148
98
88
78
68
Total power costs
$6,620
$5,620
$5,520
56,120
$7,120
$6,720
$5,120
$4,320
$4,520
$3,520
Required:
2. Using the high-low method, estimate a cost formula for power costs. Express the formula in the form Y = a +bX.
3. Predict total power costs in a month when 168 ingots are processed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6e21c9d-2468-4fe2-8ab8-89d371c7ed04%2F00c0d473-6657-47b2-9270-78cd1ec48301%2Fb1gg0io_processed.png&w=3840&q=75)
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