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S6-7 Use the high-low method (Learning Objective 4) Refer to the Jones Oil and Lube data in S6-6. Use the high-low method to determine the variable and fixed cost components of Jones Oil and Lube's operating costs. Use this information to project the monthly operating costs for a month in which the company performs 3,400 oil changes.

S6-7 Use the high-low method (Learning Objective 4) Refer to the Jones Oil and Lube data in S6-6. Use the high-low method to determine the variable and fixed cost components of Jones Oil and Lube's operating costs. Use this information to project the monthly operating costs for a month in which the company performs 3,400 oil changes.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S6-7 Use the high-low method (Learning Objective 4) Refer to the Jones Oil and Lube data in S6-6. Use the high-low method to determine the variable and fixed cost components of Jones Oil and Lube's operating costs. Use this information to project the monthly operating costs for a month in which the company performs 3,400 oil changes. S6-8 Use the high-low method (Learning Objective 4) Based on last month's records, Vochelle produced 44,000 bars of chocolate with a total manufacturing cost of $120,000. Vochelle also has past records of total manufacturing cost being $100,000 when it produced 36,000 bars of chocolate. If Vochelle produces 40,000 bars of chocolate next month, what is the expected total manufacturing cost using the high-low method? S6-9 Use the high-low method (Learning Objective 4) Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rental fee and a per-copy charge. If the company makes 8,000 copies per month, the over- all per-copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it is estimated that the cost per copy is $0.19. 1. Using the high-low method, estimate the variable rate per copy and the annual rental fee. 2. If 9,000 copies were made in a month, compute the total cost.
Transcribed Image Text:S6-7 Use the high-low method (Learning Objective 4) Refer to the Jones Oil and Lube data in S6-6. Use the high-low method to determine the variable and fixed cost components of Jones Oil and Lube's operating costs. Use this information to project the monthly operating costs for a month in which the company performs 3,400 oil changes. S6-8 Use the high-low method (Learning Objective 4) Based on last month's records, Vochelle produced 44,000 bars of chocolate with a total manufacturing cost of $120,000. Vochelle also has past records of total manufacturing cost being $100,000 when it produced 36,000 bars of chocolate. If Vochelle produces 40,000 bars of chocolate next month, what is the expected total manufacturing cost using the high-low method? S6-9 Use the high-low method (Learning Objective 4) Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rental fee and a per-copy charge. If the company makes 8,000 copies per month, the over- all per-copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it is estimated that the cost per copy is $0.19. 1. Using the high-low method, estimate the variable rate per copy and the annual rental fee. 2. If 9,000 copies were made in a month, compute the total cost.
S6-6 Prepare and analyze a scatter plot (Learning Objective 3) Jones Oil and Lube is a car care center specializing in ten-minute oil changes. Jones Oil and Lube has two service bays, which limits its capacity to 3,400 oil changes per month. The following information was collected over the past six months: Month Number of Oil Changes Operating Expenses January 3,200 $36,400 February 2,600 $31,900 March 2,800 $32,850 April.. 2,700 $32,500 Мay. 3,600 $37,000 June 2,900 $33,700 1 hin th lumo of inst th
Transcribed Image Text:S6-6 Prepare and analyze a scatter plot (Learning Objective 3) Jones Oil and Lube is a car care center specializing in ten-minute oil changes. Jones Oil and Lube has two service bays, which limits its capacity to 3,400 oil changes per month. The following information was collected over the past six months: Month Number of Oil Changes Operating Expenses January 3,200 $36,400 February 2,600 $31,900 March 2,800 $32,850 April.. 2,700 $32,500 Мay. 3,600 $37,000 June 2,900 $33,700 1 hin th lumo of inst th
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