Can answer the question? Ron Moss, a manager of Waterworks Inc., was reviewingthe water bills of the dog daycare and spa. Hedetermined that its highest and lowest bills of $3,800and 2,400 were incurred in the months of May andNovember, respectively.If 400 dogs were washed in May and 200 dogs werewashed in November, what was the variable cost perdog associated with the company's water bill?

Step 1: Introduction to the High-Low MethodIn cost accounting, the high-low method estimates a mixed…

Answered: Ron Moss, a manager of Waterworks Inc.,…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2TIF

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Louis Petit, a manager of Doggone Gorgeous, Inc., was reviewing the water bills of a dog daycare and spa. He determined that its highest and lowest bills of $3,800and $2,000 were incurred in the months of May and November, respectively. If 600 dogs were washed in May and 100 dogs were washed in November, what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) A.$ 2 comma 000 $2,000 B.$ 1 comma 800 $1,800 C.$ 1 comma 640 $1,640 D.$ 3 comma 800
Ron Moss, a manager of Waterworks Inc., was reviewing the water bills of a dog daycare and spa. He determined that its highest and lowest bills of $3,800 and $2,400 were incurred in the months of May and November, respectively. If 400 dogs were washed in May and 200 dogs were washed in November, what was the estimated cost, If 500 dogs were washed in December? Group of answer choices are listed below: $ 3,735 $3,573 $3,100 $2,500
Skittles Pet store provides a dog wash service. Its highest and lowest bills of $3800 and $2400 were incurred in the months of May and November, respectively. If 500 dogs were washed in May and 100 dogs were washed in November what was the fixed cost associated with the company's water bill? (Round any intermediate calculations. to the nearest cent and your final answer to the nearest dollar.) O $3800 O $1400 O $2050 O $2400 Next► - Previous
Using the high-low method Mark, owns a machine shop. In reviewing the shop’s utility bills for the past 12 months, he found that the highest bill of $2,600 occurred in August when the machines worked 1,200 machine hours. The lowest utility bill of $2,300 occurred in December when the machines worked 600 machine hours. Requirements Use the high—low method to calculate the variable cost per machine hour and the total fixed utility cost. Show the equation for determining the total utility cost for the machine shop. If Mark anticipates using 800 machine hours in January, predict the shop’s total utility bill using the equation from Requirement 2.
Tucker Pup’s Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a.Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
Tucker Pup's Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog- days occupancy was at an annual low of 150 days, the average cost per dog-day was $65. In July, when dog-days were at a capacity level of 600, the average cost per dog-day was $20. a. Develop an equation for monthly operating costs. b.Determine the average boarding cost per dog-day at an annual volume of 4,500 dog-days.
Bill owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of $2,800 occurred in August when the machines worked 1,200 machine hours. The lowest utility bill of $2,200 occurred in December when the machines worked 600 machine hours. Using the high-low method, the variable cost per machine hour is per machine hour and the total fixed utility cost is | O $1.20 and $1,530 O $3,40 and $1,800 O $1.50 and $1,700 O $2.00 and $1,400 O $1.00 and $1,600 身

Mukhi
Food Service Corp. offers a meal service for commuting college students. In the month of January, 2,000 meals were served at a total cost of $9,700. In February, 1,450 meals were served at a total cost of $7,300, and the total number of meals served for March were 1,100 at a total cost of $6,100. Using the high-low method, the variable cost per unit is $4.00. What is the total fixed cost and the total variable cost for January? a. The total fixed cost is $8,000, and the variable cost is $1,700. b. The total fixed cost is $5,600, and the variable cost is $4,100. O c. The total fixed cost is $4,100, and the variable cost is $5,600. d. The total fixed cost is $1,700, and the variable cost is $8,000.
The Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. the Company has the following data available. Month Miles driven Total operating costs January 16,200 $22,650 February 17,000 $23,250 March 20,000 $25,000 April 16,500 $22,875 May 17,400 $23,550 June 15,000 $22,000 Using the high-low method, the monthly operating costs if the Company drives 21,000 miles in a month will be (Round any intermediary calculations to the nearest cent.)
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element per Month Raw materials Wages Utilities Rent $ 6,500 $ 2,530 $3,500 $2,250 $ 740 Insurance Miscellaneous While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Total expense Net operating income Variable Element per Actual Total Liter for June $ 21.00 $ 133,540 $ 5.55 $ 37,130 $ 21,300 $ 10,000 Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect…
Draw a graph of the cost behavior for each of the following costs incurred by the Mountain Summit Hospital. The hospital measures monthly activity in patient days. Label both axes and the cost line in each graph.1. The cost of food varies in proportion to the number of patient days of activity. In January, the hospital provided 3,000 patient days of care, and food costs amounted to $24,000.2. The cost of salaries and fringe benefits for the administrative staff totals $12,000 per month.3. The hospital’s laboratory costs include two components: (a) $40,000 per month for compensation of personnel and depreciation on equipment and (b) $10 per patient day for chemicals and other materials used in performing the tests.4. The cost of utilities depends on how many wards the hospital needs to use during a particular month. During months with activity under 2,000 patient days of care, two wards are used, resulting in utility costs of $10,000. During months with greater than 2,000 patient days…

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