The controller of Columber Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs Total Total Month Maintenance Costs Machine Hours January February March April May June $2.630 3,400 3,950 4510 3,530 5,355 2.850 Variable cost S 4,050 6.400 7,900 5.500 8.300 Determine the variable-cost component using the high-low method (Round answer to 2 decimal places es 12.25) per machine hour
The controller of Columber Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs Total Total Month Maintenance Costs Machine Hours January February March April May June $2.630 3,400 3,950 4510 3,530 5,355 2.850 Variable cost S 4,050 6.400 7,900 5.500 8.300 Determine the variable-cost component using the high-low method (Round answer to 2 decimal places es 12.25) per machine hour
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:The controller of Cullumber Industries has collected the following monthly expense data for use in analyzing the cost behaviour of
maintenance costs
Total
Month Maintenance Costs
January
February
March
April
May
June
$2.630
3,400
Variable cost $
3,950
4,510
3,530
5,355
Total
Machine Hours
2.850
4,050
6.400
7,900
5.500
8.300
Determine the variable-cost component using the high-low method. (Round answer to 2 decimal places eg 12.25)
per machine hour
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