Robert was driving back to the office from his off-site construction job on Friday. He had put in a long week and just wanted to go home. But a text from John back in the office reminded him to enter his weekly mileage-the accountants needed to finish the company's total fleet expenses for its quarterly income statement-and the performance evaluation meeting was on Monday. Robert was frustrated that his weekend was now going to be delayed because of this data entry business. He wondered why John couldn't just use the fuel cost for the income statement. In the end, Robert complied with John's request and input his mileage information. Robert's mileage was added to the other vehicles' mileage information, with the quarterly totals listed below. Total fleet expenses on the income statement are a combination of the five costs shown here. Q1 Q2 Q3 Q4 Vehicle Insurance $1,800 1,800 1,800 1,800 Registration Fees $1,200 1,200 1,200 1,200 Fuel $2,340 2,610 2,250 2,790 Depreciation (Shed & Vehicles) $5,300 5,300 5,300 5,300 Vehicle Maintenance Miles Driven 26,000 29,000 25,000 2,842 31,000 $2,522 2,552 2,350
Robert was driving back to the office from his off-site construction job on Friday. He had put in a long week and just wanted to go home. But a text from John back in the office reminded him to enter his weekly mileage-the accountants needed to finish the company's total fleet expenses for its quarterly income statement-and the performance evaluation meeting was on Monday. Robert was frustrated that his weekend was now going to be delayed because of this data entry business. He wondered why John couldn't just use the fuel cost for the income statement. In the end, Robert complied with John's request and input his mileage information. Robert's mileage was added to the other vehicles' mileage information, with the quarterly totals listed below. Total fleet expenses on the income statement are a combination of the five costs shown here. Q1 Q2 Q3 Q4 Vehicle Insurance $1,800 1,800 1,800 1,800 Registration Fees $1,200 1,200 1,200 1,200 Fuel $2,340 2,610 2,250 2,790 Depreciation (Shed & Vehicles) $5,300 5,300 5,300 5,300 Vehicle Maintenance Miles Driven 26,000 29,000 25,000 2,842 31,000 $2,522 2,552 2,350
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(c)
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Place all of this Fleet Expense information into one final cost function where Y is Total Fleet Expenses, and X is number of miles
driven. Write out the formula in Y = m(X) + b format. (Round variable cost per unit to 3 decimal places, e.g. 15.256.)
Y = $
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X+ $
Attempts: 2 of 3 used
For any mixed costs, use the high-low method to separate the fixed and variable components, using miles driven as the cost driver
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Robert was driving back to the office from his off-site construction job on Friday. He had put in a long week and just wanted to go
home. But a text from John back in the office reminded him to enter his weekly mileage-the accountants needed to finish the
company's total fleet expenses for its quarterly income statement-and the performance evaluation meeting was on Monday. Robert
was frustrated that his weekend was now going to be delayed because of this data entry business. He wondered why John couldn't just
use the fuel cost for the income statement.
In the end, Robert complied with John's request and input his mileage information. Robert's mileage was added to the other vehicles'
mileage information, with the quarterly totals listed below. Total fleet expenses on the income statement are a combination of the five
costs shown here.
Q1
Q2
Q3
Q4
(a)
Vehicle
Insurance
$1,800
1,800
1,800
1,800
Registration
Fees
$1,200
1,200
1,200
1,200
Fuel
$2,340
2,610
2,250
2,790
Depreciation
(Shed & Vehicles)
$5,300
5,300
5,300
5,300
Vehicle
Maintenance
For any mixed costs, use the high-low method to separate the fixed and variable components, using miles driven as the coet driver
$2,522
2,552
2,350
Miles
Driven
26,000
29,000
25.000
2,842 31,000
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