Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month January February March April May June Number of Appointments 300 200 500 425 350 275 Variable Cost per Unit Fixed Cost Total Cost $ 6,100 5,000 6,650 6,050 6,500 5,050 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 2CE: Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients....
icon
Related questions
Topic Video
Question
Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of
the year:
Month
January
February
March
April
May
June
Number of
Appointments
300
200
500
425
350
275
Variable Cost per Unit
Fixed Cost
Total Cost
$ 6,100
5,000
6,650
6,050
6,500
5,050
Required:
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.
Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
Transcribed Image Text:Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month January February March April May June Number of Appointments 300 200 500 425 350 275 Variable Cost per Unit Fixed Cost Total Cost $ 6,100 5,000 6,650 6,050 6,500 5,050 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College