Philippine Island Tours has incurred the following bus maintenance costs during the recent tourist season.Answer the following:Using the high-low method, determine which month is the highest?Using the high-low method, determine which month is the lowest? Using the high-low method, determine the variable cost per tour mile traveled. (Use this format 0..123) Using the high-low method, determine fixed cost per month (Use this format 10,000) Using the high-low method Develop a formula to express the cost behavior exhibited by the company’s maintenance cost. (Use this format Y=2a+10)Using the high-low method, predict the level of maintenance cost that would be incurring during the month of May when 34,000 tour miles are driven. (Use this format 10,000) MonthMiles Traveled by TourMaintenanceBusesCostNovember 12,750P17,100December 15,900P17,400January19,050P17,550February22,500P18,000March30,000P18,750April12,000P16,500

High low method is used to calculate variable cost and fixed cost from the mixed cost of product.

Answered: sing the high-low method, determine…

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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Philippine Island Tours has incurred the following bus maintenance costs during the recent tourist season.

Answer the following:

Using the high-low method, determine which month is the highest?
Using the high-low method, determine which month is the lowest?
Using the high-low method, determine the variable cost per tour mile traveled. (Use this format 0..123)
Using the high-low method, determine fixed cost per month (Use this format 10,000)
Using the high-low method Develop a formula to express the cost behavior exhibited by the company’s maintenance cost. (Use this format Y=2a+10)
Using the high-low method, predict the level of maintenance cost that would be incurring during the month of May when 34,000 tour miles are driven. (Use this format 10,000)

Month
Miles Traveled by Tour
Maintenance
Buses
Cost
November 12,750
P17,100
December 15,900
P17,400
January
19,050
P17,550
February
22,500
P18,000
March
30,000
P18,750
April
12,000
P16,500

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