Semi-variable cost: Jessy Company sells health insurance. It is interested in determining the cost equation for claims processing so it can more accurately budget its claims department. Information for the high and low costs and volumes for last year appear below Month Activity Cost May 400,000 claims $320,000 October 600,000 claims $400,000 Using the high-low method, with claims as to the activity driver, what is the level of fixed costs?

Semi-variable cost: Jessy Company sells health insurance. It is interested in determining the cost equation for claims processing so it can more accurately budget its claims department. Information for the high and low costs and volumes for last year appear below Month Activity Cost May 400,000 claims $320,000 October 600,000 claims $400,000 Using the high-low method, with claims as to the activity driver, what is the level of fixed costs?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 4MCQ: In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent...

See similar textbooks

Similar questions

PLEASE USE THIS TIME TO ANSWER THIS. AYAW NA PAGHULAT UG DEADLINE, TOMORROW IS ANOTHER DAY. PLEASE DEFINE AND GIVE THE FORMULA OF THE FOLLOWING (IF THERE IS ANY): PLEASE ANSWER HERE DIRECTLY 1. absorption costing 2. activity bases (drivers) 3. break-even polnt 4. contributlon margin 5. contributlon margin ratlo 6. cost behavlor 7. cost-volume-profit analysls 8. cost-volume-profit chart
Dry Cleaners has determined the following about its costs: Total variable expenses are screenshot attache dtahnkng rnkgwr
Assume that Painless Dental Clinics, Inc. offers three basic dental services. Teh following are its prices and costs.
NO WRONG ANSWER
Want your help with problem
D) is what i need assistance with
Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.
In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent variable. c. is the variable rate. d. is the total fixed cost. e. cannot be determined from the above formula. Use the following information for Multiple-Choice Questions 3-4 through 3-7: The following cost formula was developed by using monthly data for a hospital. Total Cost = 128,000,000 + (12,000 Number of Patient Days)
High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month represents the high point? The low point? 2. Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. 3. Using your answers to Requirement 2, write the cost formula for tanning services. 4. Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in Requirement 3. Of that total cost, how much is the total fixed cost for September? How much is the total predicted variable cost for September? 5. CONCEPTUAL CONNECTION Identify and briefly explain any additional issues that Luisa might be wise to consider when using the high-low method to estimate the costs of her tanning salon.
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method, express the companys overtime wages as an equation where x represents number of invoices processed. Assume BC has monthly fixed costs of $3,800. Predict the overtime wages if 9,000 invoices are processed. Predict the overtime wages if 6,500 invoices are processed. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.
Orlando Clinic has fixed costs of $800,000, a variable cost per visit of $60, and revenue per visit of $100. For this clinic (within the relevant range), which of the following statements is most correct? O Higher volume leads to higher total costs. O Higher volume leads to higher average costs. O Higher volume leads to a higher contribution margin per unit. O Higher volume leads to lower contribution margin per unit.