Ef 278. The following information is available for a company's maintenance cost over the last seven months.Units Produced90180MonthJuneJulyAugustSeptemberOctoberNovemberDecemberUsing the high-low method, estimate both the fixed and variable components of its maintenance cost.12015021024060Maintenance Cost$5,4506,9005,1006,0006,900Total cost at the highest volumeVariable costs at highest volume:Highest volumeVariable cost per unit producedTotal variable costs at highest volumeTotal fixed costsTotal cost at the lowest volumeVariable costs at lowest volume:Lowest volume8,1003,600High-Low method - Calculation of variable cost per unit produced$8,100.003,600.000

High low method is a method of cost estimation which is used for estimating cost components. Under…

The following information is available for a company's maintenance cost over the last seven months. Units Produced 90 180 120 150 210 240 60 Month Maintenance Cost $ 5,450 6,900 5,100 6,000 6,900 8,100 3,600 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per unit produced June July August September October November December Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit produced Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Lowest volume 8,100.00 3,600.00 0

The following information is available for a company's maintenance cost over the last seven months. Units Produced 90 180 120 150 210 240 60 Month Maintenance Cost $ 5,450 6,900 5,100 6,000 6,900 8,100 3,600 Using the high-low method, estimate both the fixed and variable components of its maintenance cost. High-Low method - Calculation of variable cost per unit produced June July August September October November December Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit produced Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Lowest volume 8,100.00 3,600.00 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fans Company has two service departments-product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: Design SERVICE DEPARTMENT Product Design 0% Engineering Support 20% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $1,863,265 SERVICES PROVIDED TO Support 10% 0% $623,878 $1,036,122 Assembly 30% 45% $100,000 $ 200,000 $540,000 $ 820,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) Finishing 60% 35% D
Question 3: When is an employer NOT required to file a quarterly Form 941? Answer: А. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $1,000 В. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $1,500 С. O When annual tax liability for federal income, Social Security, and Medicare tax is less than $2,500 D. When annual tax liability for federal income, Social Security, and Medicare tax is less than $100,000
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