T.L. Franklin Corporation has three costs: A, which is variable: B, which is fixed; and C, which is semivariable. The company uses the high-low method and extracted the following data from its accounting records: • At 198,000 hours of activity, Cost A totaled $2,646,000. • At 113,450 hours, the low point during the period, Cost C totaled $1,516,000; at 218,000 hours, the high point, Cost C's fixed portion amounted to $1.75 per hour. • At 142,000 hours of activity, the sum of Costs A, B, and C amounted to $8,198,000. Required: A. Compute the variable portion (total) of Cost C at 113,450 hours of activity. B. Compute Cost C (total) at 142,000 hours of activity. C. Compute Cost B (total) at 142,000 hours of activity. For all requirements, do not round intermediate calculations. Round your final answers to the nearest dollar amount. A. Variable portion of Cost C B. Total of Cost C C. Total of Cost B
T.L. Franklin Corporation has three costs: A, which is variable: B, which is fixed; and C, which is semivariable. The company uses the high-low method and extracted the following data from its accounting records: • At 198,000 hours of activity, Cost A totaled $2,646,000. • At 113,450 hours, the low point during the period, Cost C totaled $1,516,000; at 218,000 hours, the high point, Cost C's fixed portion amounted to $1.75 per hour. • At 142,000 hours of activity, the sum of Costs A, B, and C amounted to $8,198,000. Required: A. Compute the variable portion (total) of Cost C at 113,450 hours of activity. B. Compute Cost C (total) at 142,000 hours of activity. C. Compute Cost B (total) at 142,000 hours of activity. For all requirements, do not round intermediate calculations. Round your final answers to the nearest dollar amount. A. Variable portion of Cost C B. Total of Cost C C. Total of Cost B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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04.
Transcribed Image Text:T.L. Franklin Corporation has three costs: A, which is variable; B, which is fixed; and C, which is semivariable. The company uses the
high-low method and extracted the following data from its accounting records:
• At 198,000 hours of activity, Cost A totaled $2,646,000.
.
At 113,450 hours, the low point during the period, Cost C totaled $1,516,000, at 218,000 hours, the high point, Cost C's fixed portion
amounted to $1.75 per hour.
• At 142,000 hours of activity, the sum of Costs A, B, and C amounted to $8,198,000.
Required:
A. Compute the variable portion (total) of Cost C at 113,450 hours of activity.
B. Compute Cost C (total) at 142,000 hours of activity.
C. Compute Cost B (total) at 142,000 hours of activity.
For all requirements, do not round intermediate calculations. Round your final answers to the nearest dollar amount.
A. Variable portion of Cost C
B. Total of Cost C
C. Total of Cost B
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