Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,649 $26,575 April 11,445 $26,438 May 11,977 $26,795 June 12,200 $26,944 July 11,709 $26,615 August 11,195 $26,271 September 11,989 $26,803 October 11,680 $26,596 November 11,828 $26,695 Management believes that supply cost is a mixed cost that depends on client visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first rounding off to the nearest whole cent. Then compute the fixed component rounding off to the nearest whole dollar. Those estimates are: a. $2.36 per client visit; $26,616 per month. b. $1.25 per client visit; $11,712 per month. c. $0.71 per client visit; $18,265 per month. d. $0.67 per client visit; $18,770 per month.

Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,649 $26,575 April 11,445 $26,438 May 11,977 $26,795 June 12,200 $26,944 July 11,709 $26,615 August 11,195 $26,271 September 11,989 $26,803 October 11,680 $26,596 November 11,828 $26,695 Management believes that supply cost is a mixed cost that depends on client visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first rounding off to the nearest whole cent. Then compute the fixed component rounding off to the nearest whole dollar. Those estimates are: a. $2.36 per client visit; $26,616 per month. b. $1.25 per client visit; $11,712 per month. c. $0.71 per client visit; $18,265 per month. d. $0.67 per client visit; $18,770 per month.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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