Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000

Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years: Year Miles Operating Costs 2016 55,000 $195,000 2017 70,000 $210,000 2018 50,000 $180,000 2019 65,000 $205,000 2020 85,000 $225,150 Using the high-low method, what is the cost estimate for fixed costs for 2021? Select one: Ο A. $109,650 O B. $115,500 0 C. $100,000 о D. $ 70,000

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

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

See similar textbooks

Related questions

Q: cost accounting; The manager of Dukey's Shoe Station estimates operating costs for the year will…

A: Break-even Sales represents that particular point of sale where there is no operating profit/loss.…

Q: None

A: Step 1: Introduction to the High-Low MethodThe high-low method is a technique to analyze mixed costs…

Q: Please introduction and correct and incorrect option explain!

A: To find the Accounting Break-Even Quantity, we need to calculate the number of units that must be…

Q: The cost to produce Part A was $5 per unit in 2021. During 2022, it has increased to $9 per unit. In…

A: make or buy decision we look into the cost to produce and cost to purchase the difference is…

Q: Capiz Company's 2020 manufacturing costs were as follows: Direct materials P70,000; Direct labor…

A: Answer: P120,000

Q: Total fixed costs for Randolph Manufacturing are $784,000. Total costs, including both fixed and…

A: Fixed cost:It is the cost that would not change with an increase or decrease in the number of goods…

Q: Hill Company plans to produce 300,000 units next year. The production budget for this level of…

A: The costs can be differentiate as fixed and variable cost. The fixed costs remains constant at every…

Q: Total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are $64,000.…

A: Calculation of fixed cost is as follows:

Question

Super Speedy Delivery Services has the collected the following information about operating expenditures for its delivery truck fleet for the past five years:
Year
Miles
Operating Costs
2016
55,000
$195,000
2017
70,000
$210,000
2018
50,000
$180,000
2019
65,000
$205,000
2020
85,000
$225,150
Using the high-low method, what is the cost estimate for fixed costs for 2021?
Select one:
Ο
A. $109,650
O B. $115,500
0
C. $100,000
о
D. $ 70,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Statler Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2021. The following cost and other data were gathered for 2020: (Click the icon to view the cost and other data) Read the requirements. Requirement 1. Which of the preceding costs is variable? Fixed? Mixed? Explain. Cost function Mixed Fixed Variable Cost Maintenance Health insurance Shipping costs Requirement 2. Using the high-low method, determine the cost function for each cost. Begin by selecting the general formula that represents the linear cost function for each cost. y = a +bX y = a y = bX Maintenance Health insurance Shipping costs Now determine the cost function for each cost. (Enter all values in the same format as the general linear formula. If an input field is not used in the Cost function Maintenance Explanation The cost neither remains constant in total nor remains constant per unit. Although the cost driver varies from month to month, the total…
Which of the preceding costs is variable? Fixed? Mixed? Explain.
Please help me find fixed costs. Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last three years. Number of Visitors per Year (thousands) Maintenance Costs($000) 1,825 $ 2,925 2,007 3,225 2,375 3,750 Required: a. Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $3,000 $4.00q $225 + $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the planning budget? Multiple Choice O $1,725 $1,750 $1,650 $1,500
The annual cost and an effectiveness measure of items salvaged per year for four mutually exclusive, service sector alternatives have been collected. Calculate (a) the cost effectiveness ratio for each alternative, and (b) use the CER to identify the best alternative. Alternative Cost C, $/Year Salvaged Items/Year, E W 355 20 X 208 17 Y 660 41 Z 102 7
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 4.009 $150 + $0.75q The company's planned level of activity was 2,110 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice C $7,840 $8,140 $8,340 $ 3,000 $8,440
SOLVE BOTH QUESTIONS , DO NOT GIVE SOLUTION IN IMAGE
The following information relates to Excalibur Delivery Services: Year 1: Total miles driven 615,000Year 1: Total operating costs $211,500Year 2: Total miles driven 935,000Year 2: Total operating costs $275,500 Use the high-low method to calculate Excalibur’s total fixed costs.
What are the estimated direct labor costs?
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 3,000 $ 4.009 $150 $0.75q The company's planned level of activity was 2,000 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice О $7,900 О $7,700 $7,400 О $8,000 ×
Provide correct solution and accounting question
It is desired to determine how much longer a forklift truck should remain in service before it is replaced by the new truck (challenger) for which data were given in the shown Table. The defender in this case is two years old, originally cost $19,500, and has a present realizable MV of $7,500. If kept, its MVs and annual expenses are expected to be as follows: Determine the most economical period to keep the defender before replacing it (if at all) with the present challenger of Example. The before -tax cost of capital (MARR) is 10% per year. A new forklift truck will require an investment of $30,000 and is expected to have year-end MVs and annual expenses as shown in columns 2 and 5, respectively, of Table. If the before-tax MARR is 10% per year,