Hello tutor provide correct solution Stone Tech Corp. collected the following data:.March: 12,000 units produced, total maintenance cost = $30,000June: 28,000 units produced, total maintenance cost = $58,000Using the high-low method, compute:.(a) Variable cost per unit (round to 2 decimal places)•(b) Fixed cost

Step 1: Definition of High-Low MethodThe high-low method is used to separate mixed costs into fixed…

Answered: Stone Tech Corp. collected the…

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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Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6 months. Total Cost Units Produced $47,149 19,420 July 51,792 34,528 August 59,345 38,844 September 48,150 23,738 October 80,385 43,160 November 66,898 41,002 December Compute the variable cost per unit using the high-low method. (Round answer to 2 decimal places, eg. 2.25.) Variable cost per unit $ Compute the fixed cost elements using the high-low method Fixed costs $ lhp 19 m ho K4 ins prt sc delet 6 7 backde
The controller of Sheridan Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,930 350 February 3,230 400 March 3,830 550 April 4,730 640 May 3,430 550 June 5,730 750 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour eTextbook and Media Determine the fixed costs using the high-low method for this mixed cost.
Buckeye Company has provided the following data for maintenance costs: Prior Year Current Year Machine hours 19,100 22,200 Maintenance cost $30,500 $34,220 Required: The best estimate of the cost formula for maintenance would be: (Do not round intermediate calculations. Round your Variable cost per unit to 2 decimal places.) a) $7,580 per year plus $.833 per machine hour. b) $26,640 per year plus $.833 per machine hour. c) $7,580 per year plus $1.20 per machine hour. d) $30,500 per year plus $1.20 per machine hour.
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The controller of Sunland Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month TotalMaintenance Costs TotalMachine Hours January $2,590 330 February 2,890 380 March 3,490 530 April 4,390 660 May 3,090 530 June 5,470 730 Determine the variable cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour $enter the variable cost per machine hour in dollars rounded to 2 decimal places Determine the fixed cost components using the high-low method. Total fixed costs $enter the total fixed costs in dollars
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What is the estimated fixed maintenance cost?
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Stone Tech Corp. collected the following data: . March: 12,000 units produced, total maintenance cost = $30,000 June: 28,000 units produced, total maintenance cost = $58,000 Using the high-low method, compute: . (a) Variable cost per unit (round to 2 decimal places) • (b) Fixed cost