Determine the variable cost component using the high-low method? The controller of Harper Manufacturing has collected the following monthlyexpense data for use in analyzing the cost behavior of maintenance costs:Month Total Maintenance Costs Total Machine HoursJanuary $3,4004,000February $3,9005,500March $4,5007,500April$5,6009,800May $4,2006,00010,000June $5,700Determine the variable-cost components using the high-low method (roundvariable cost to 2 decimal places). Determine the fixed cost components usingthe high-low method (round the fixed cost to 0 decimal places).

Explanation of Total Maintenance Costs: Maintenance costs represent all expenses related to keeping…

Answered: The controller of Harper Manufacturing…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 10EA: ThingOne Company has the following information available for the past year. They use machine hours...

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The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month TotalMaintenance Costs TotalMachine Hours January $2,930 350 February 3,230 400 March 3,830 550 April 4,730 640 May 3,430 550 June 5,840 750 Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.) Variable cost per machine hour $ Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Total fixed costs $
The controller of Norton 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 $2,710 350 February 3,010 400 March 3,610 550 April 4,510 640 May 3,210 550 June 5,590 750 Determine the variable cost components using the high-low method. (Round variable cost to 3 decimal places e.g. 12.250.) Variable cost per machine hour LINK TO TEXT LINK TO TEXT VIDEO: APPLIED SKILLS Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Total fixed costs
The controller of Sheridan Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,930 350 February 3,230 400 March 3,830 550 April 4,730 640 May 3,430 550 June 5,730 750 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.) Variable cost per machine hour eTextbook and Media Determine the fixed costs using the high-low method for this mixed cost.
Deidoro Company has provided the following data for maintenance cost: Machine hours Maintenance cost Multiple Choice Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to: (Round your intermediate calculations to 2 decimal places.) O O Prior Year 17,100 20,100 $ 29,400 $ 34,200 $29,400 per year; $1.701 per machine hour Current Year $2,040 per year; $1.701 per machine hour $2,040 per year; $1.600 per machine hour $29,400 per year; $1.600 per machine hour
E19-3 The controller of Furgee 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 February March $2,500 3,000 3,600 4,500 3,200 4,900 300 350 500 April May 690 400 June 700 Instructions (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 variable-cost elements. Use 100-hour increments and $1,000 cost increments.
The controller of Rather Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. January February March April May June July August September October November December (a) Total Electricity Costs $2,500 Fixed-costs 3,000 3,600 4,500 3,200 4,900 4,100 3,800 5,100 4,200 3,300 5,860 Your answer is incorrect. $ Total Machine Hours Variable-costs $ 300 350 500 690 400 700 650 520 680 630 Determine the fixed- and variable-cost components using the high-low method. 350 720
The following computer printout was generated, using regression, for use in estimating maintenance costs. Intercept 8300 X Variable 1 37 Multiple R 0.9500 R Square 0.9025 Activity variable machine hours An estimate of maintenance costs at an activity level of 100 machine hours would be:
Markowis Corp. has collected the following data concerning its maintenance costs for the past 6 months.July August September October November DecemberUnits Produced18,000 32,000 36,000 22,000 40,000 38,000Total Cost$36,000 48,000 55,000 38,000 74,500 62,000Compute the variable- and fixed-cost elements using the high-low method.
The Mortise Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Mortise has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month Cost Hours January $40,000 3,600 February 38,500 3,000 March 36,280 3,300 April 38,000 3,500 May 69,850 5,850 June 45,000 4,250 a. What is the slope coefficient? b. What is the constant for the estimated cost equation? c. What is the estimated cost function for the above data? d. What is the estimated total cost at an operating level of 3,100 hours?
For a simple regression analysis model that is used to allocate factory overhead, an internal auditor finds that the intersection of the line of best fit for the overhead allocation with the y-axis is $14,000. The slope of the line is 0.2. The independent variable, factory wages, amounts to $810,000 for the month. What is the estimated amount of factory overhead to be allocated for the month? Multiple Choice $289,400. $162.000. $68,000. $88,000.
For its inspecting cost pool, Brilliant Professor Mullen Company expected an overhead cost of $360,000 and an estimated 14,200 inspections. The actual overhead cost for that cost pool was $395,000 for 16,000 actual inspections. The activity-based overhead rate (ABOR) used to assign the costs of the inspecting cost pool to products is __.correct answer this general accounting
The Gangwere Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Gangwere Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month Cost Hours January $44,900 3,500 February 24,400 2,000 March 31,280 2,450 April 36,400 3,000 May 44,160 3,900 June 42,400 3,740How is the cost function stated? Question 12 options: a) y = $3,600 + $10.40X b) y = $10,112 + $8.64X c) y = $26,672 + $1.84X d) y = $21,360 + $10.40

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