The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Total Machine Hours Month January $2,640 February 3,000 March 3,600 April 4,500 May 3,200 June 4,620 3,500 4,000 6,000 7,900 5,000 8,000 A- Determine the fixed and variable cost components using the high low method.
The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Total Machine Hours Month January $2,640 February 3,000 March 3,600 April 4,500 May 3,200 June 4,620 3,500 4,000 6,000 7,900 5,000 8,000 A- Determine the fixed and variable cost components using the high low method.
Chapter1: Financial Statements And Business Decisions
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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 Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Total
Maintenance Costs
Total
Machine Hours
Month
January
$2,640
February 3,000
March
3,600
April
May
June
4,500
3,200
3,500
4,000
6,000
7,900
5,000
4,620
A-Determine the fixed and variable cost components using the high low method.
B. Prepare a graph showing the behavior of maintenance costs and identify the fixed and varaible cost elements. Use 2000-hour increments and $100 cost increments.
More info you show me the better please.
8,000
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