The following information is available for a company's maintenance cost over the last seven months. Month Maintenance Hours Maintenance Cost June 11 $4,950 July 17 5,600 August 13 4,600 September 16 5,500 October 22 5,600 November 25 5,800 December 7 3,100 Using the high-low method, estimate both the fixed and variable components of its maintenance cost.
Q: Miss River Railroad decided to use the high-low method and operating data from the past six months…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: Truman Inc. has provided the following production and total cost data for two levels of monthly…
A: Fixed manufacturing cost is the fixed cost incurred on the making of the product. It is the cost…
Q: Pharoah Corp. has collected the following data concerning its maintenance costs for the past 6…
A: Highest activity = 48,200 units Lowest activity = 21,700 units
Q: X Company accumulates the following data about maintenance costs, a mixed cost, using hours as the…
A: X company has a mixed cost of maintenance costs using hours as the activity level. Month Hours…
Q: maintenance costs: Total Total Month Maintenance Costs Machine Hours January $2,750 2,850 February…
A: Solution... Highest point Machine hours = 8,300 Maintenance costs = $5,693 Lowest point…
Q: Direct labour Sales Selling expenses Raw (direct) materials on hand: January 1 December 31 General…
A: Cost of goods manufactured - The cost of goods manufactured is calculated as follows - Total…
Q: Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $…
A: Answer:- Activity variance meaning:- Activity variance can be defined as the disparities between…
Q: The following information is available for a company's maintenance cost over the last seven months.…
A: A variable cost is one that changes depending on the amount produced or sold by the company.…
Q: Determine the monthly volatility for these freight costs? (Answer to 3 decimal places) Determine the…
A: The standard deviation informs us how spread apart the statistics in a group are from the average. A…
Q: Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months.…
A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…
Q: The controller of Sandhill Industries has collected the following monthly expense data for use in…
A: High -Low method: The high-low method is an easy and cost efficiency method for managers to estimate…
Q: Based on the above, using the high-low method, determine an estimate of total maintenance cost for a…
A: Solution:- Calculation of production cost using High low method as follows under:-
Q: The following data is the cost information for company A over a period for output level of…
A: Fixed costs are those costs which do not change with change in level of activity. Variable costs are…
Q: The following information is available for a company's maintenance cost over the last seven months.…
A: The high-low method is a straightforward and easy-to-understand approach that is frequently employed…
Q: Finch Company began its operations on March 31 of the current year. Finch has the following…
A: Cash payments means the amount of cash expected to be paid by an entity during a period. It could…
Q: ake’s Roof Repair has provided the following data concerning its costs
A: Activity Variance Statement
Q: The following information shows maintenance cost over the last four months. Month Units Produced…
A: HIGH-LOW METHOD:The high-low method refers to the cost accounting method that is used to separate…
Q: Burnham Industries incurs the following costs for the month: Direct materials $1,900 Direct labor…
A:
Q: Miss River Railroad decided to use the high-low method and operating data from the past six months…
A: working notes: Highest activity cost = $1,143,500 Lowest activity cost = $783,900 Highest…
Q: Using the highest and lowest levels of activity for the past year, the cost function representing…
A: The cost function of maintenance cost y = 439,000 + 14x Where, P439,000 is the fixed cost P14 is…
Q: Sheridan Corp. has collected the following data concerning its maintenan July August September…
A: Variable costs fluctuate with manufacturing or marketing levels and are incurred as a direct…
Q: Based on the above, using the high-low method, the estimated fixed cost element is * $22,460 O…
A: Variable cost vary with each unit of production. Fixed cost remain same irrespective of the level of…
Q: None
A: Step 1: Introduction to Mixed Costs:Mixed costs are those costs that have characteristics of both…
Q: 3. The data below relates to SunRise for January and February of the current year.…
A: Given the following information: Highest activity cost: $80,000 Highest activity units: 5,000 hours…
Q: ntenance costs for the past 6 months. July August September October November December Units…
A:
Q: Harry began his analysis of repairing costs by collecting cost and activity data for a number of…
A: Following is the answer to the given question
Q: Burnham Industries incurs the following costs for the month: Direct materials $2,000 Direct labor…
A: Prime cost = Direct materials + direct labor
Q: The manufacturing cost of Calico Industries for three months of the year are provided below: Total…
A: The amount of money spent by a company to create one unit of a marketable good is known as the cost…
Q: The following selected data were taken from the accounting records of Metcalf Manufacturing. The…
A: Cost Behavior refers to the change the cost of goods or services due to the change in the quantity…
Q: Boston Railroad decided to use the high-low method and operating data from the past six months to…
A: Variable Cost as per high-low method = (Cost at highest level of activity - Cost at lowest level of…
Q: Boston Railroad decided to use the high-low method and operating data from the past six months to…
A: A high low method is used to separate the mixed cost into fixed cost and variable cost. In this…
Q: Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months.…
A: Lets understand the basics. High low method is used to separate variable cost and fixed cost from…
Q: Pablo Company wishes to determine the fixed portion of its maintenance expenses (a semi-variable…
A: Semi-Variable cost is the cost in which includes both fixed and variable costs included in it. The…
Q: At an activity level of 8,300 machine-hours in a month, B Company's total variable maintenance cost…
A: Formula: Variable maintenance cost per hour = Total Variable maintenance cost / Total activity level…
Q: Boston Railroad decided to use the high-low method and operating data from the past six months to…
A: The costs incurred for the production are classified as fixed and variable costs. The high-low…
Q: The data below relates to SunRise for January and February of the current year.…
A: Computation of variable cost is as follows: High low method =Maintenance cost at high no. of units/…
Q: The following information is available about electricity costs for the first six months of the year.…
A: Solution... Highest point = 6,200 machine hours Total cost = $5,980 Lowest point = 2,300…
Q: ake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month Cost…
A: Variances are the differences between the actual values and budgeted values. If the budgeted values…
Q: The following information is available about electricity costs for the first six months of the year.…
A: High low method Formula: Variable cost per unit = (Highest activity cost - Lowest activity cost) /…
Q: Assume that a company provided the following cost formulas for three of its expenses (where qrefers…
A: The spending variance measures the difference between the actual amount spent on an expense and the…
Q: Jake's Roof Repair has provided the following data concerning its costs: Wages and salaries Parts…
A: Variance:The variance in accounting refers to the deviation which is between the figure of the…
Q: The manufacturing cost of Mocha Industries for three months of the year are provided below: Total…
A: The costs incurred for the production are classified as fixed, variable costs and mixed costs. The…
Q: Wildhorse Corp. has collected the following data concerning its maintenance costs for the past 6…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: The cost data for Evencoat Paint for the year 2019 is as follows: Evencoat Paint data Month…
A: The question is based on the concept of Cost Accounting.
Q: Washington Accounting, Inc. has the following information on the company's utility cost for the…
A: Total cost means the total amount of money incurred by the entity on the making of goods. It…
Q: At the end of the first year, the XYZ Team had incurred $550,000 of cost, with the total estimated…
A: Revenue is the money generated by conducting regular business activities. It is computed by dividing…
Step by step
Solved in 2 steps
- The controller of Ivanhoe Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,041 3,456 4,147 5,184 3,686 5,633 Total Machine Hours 4,032 Variable cost per machine hour $ 4,608 6,912 9,101 5,760 9,216 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)Jason Inc. provides the following manufacturing costs for the first four months of the year. Manufacturing Costs for the First Four Months Months Production in Units Total Costs January 2,500 $33,750 February 1,800 $29,900 March 3,000 $36,500 April 2,600 $34,300 Using the high-low method, determine the total fixed costs. (Round intermediate calculations to two decimal places, and the final calculation to the nearest dollar.) Group of answer choices $15,500 $20,000 $30,300 $16,500First Buy Company provided the following manufacturing costs for the month of June. Direct labor cost $136,000Direct materials cost 80,000Equipment depreciation (straight-line) 24,000Factory insurance 19,000Factory manager's salary 12,800Janitor's salary 5,000Packaging costs 18,800 From the above information, calculate First Buy's total variable costs.
- Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost per Month $ 20,900 Cost per Repair-Hour. $ 15.00 $ 7.78 $8.35 $ 1.80 Wages and salaries. Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses For example, wages and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours In May, but actually worked 2,400 repair-hours. The company expects its sales to be $45.00 per repair-hour. Revenue Expenses: $ 2,760 $ 5,790 $ 4,640 $ 3,850 Required: Compute the company's activity variances for May. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating…The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 14,000 $ 265,000 Slowest month (December) 6,000 $ 129,000 What are the direct labor costs per machine hour?Data below relate to the Tori Company for May and August of the current year: May 35,000 Maintenance hours Maintenance cost $ 1,247,000 August 40,000 $ 1,337,000 May and August were the lowest and highest activity levels, and Tori uses the high-low method to analyze cost behavior. Which of the following statements is true? Multiple Choice The variable maintenance cost is $18 per hour The variable maintenance cost is $20 per hour The variable maintenance cost is $22 per hour
- Jake’s Roof Repair has provided the following data concerning its costs: Fixed Costper Month Cost perRepair-Hour Wages and salaries $ 20,900 $ 15.00 Parts and supplies $ 7.60 Equipment depreciation $ 2,730 $ 0.55 Truck operating expenses $ 5,750 $ 1.60 Rent $ 4,650 Administrative expenses $ 3,870 $ 0.70 For example, wages and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,900 repair-hours in May, but actually worked 2,800 repair-hours. The company expects its sales to be $48.00 per repair-hour. Required: Compute the company’s activity variances for May.The following data relate to the Torrence Company for May and August: May August Maintenance hours 20,000 45, 000 Maintenance cost $ 1,322, 000 $ 1,417,000 May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 23, 000 hours in October, which of the following statements is true? (a) Total maintenance cost will be $ 1,322,000, (b) $1,329,000, (c) $1,379, 000, (d) 1,394, 000, (e)$1,417,00017. The following information is available for electricity costs for the last six months of the year: Month Volume Costs July 2,800 4.400 August 5,600 10,800 September 6,400 11,400 October 3.500 7,800 November 2,400 4,800 December 4,200 8,100 Using the high-low method, what is the fixed costs?
- Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed “gross-ton miles,” which is the total number of tons multiplied by the miles moved. Transportation Costs Gross-Ton Miles January $1,776,000 560,000 February 2,700,000 1,000,000 March 1,650,000 500,000 April 1,860,000 600,000 May 1,440,000 400,000 June 1,566,000 460,000 Determine the variable cost per gross-ton mile and the total fixed cost. Variable cost (If required, round to two decimal places.) $fill in the blank 1 per gross-ton mile Total fixed cost $fill in the blank 2The manufacturing costs of Calico Industries for three months of the year are provided below: Total Cost Production (units) April $112,700 275,900 May 91,900 163,500 June 108,700 247,900 Using the high-low method, the variable cost per unit and the total fixed costs areThe following information is available about electricity costs for the first six months of the year. Management think that electricity costs are likely to be related to how long machines are running. Month Machinehours ElectricityCost January 2,800 $2,925 February 5,600 $5,526 March 6,200 $5,980 April 3,500 $3,620 May 2,300 $2,470 June 4,500 $4,450 You may wish to refer to the formula sheet to answer this question. If you haven't already downloaded it, you can download it here. Required: Using the high-low method, (a) calculate the fixed costs b. state the cost formula for estimating the electricity cost based on the machine hours