The KING Company would like you to estimate the maintenance costs on its delivery trucks. The cost is a mixed cost. The following data is obtained for the first 6 months of the year: Mileage Costs ($) 17,000 January 12,000 February 10,000 16,700 March 12,800 15,200 April 11,000 15,920 May 16,000 21,200 June 14,000 18,080 Compute the fixed cost portion using the High-Low Method of estimating costs. A. $9,200 B. $10,000 C. $18,400 D. $17,500

The KING Company would like you to estimate the maintenance costs on its delivery trucks. The cost is a mixed cost. The following data is obtained for the first 6 months of the year: Mileage Costs ($) 17,000 January 12,000 February 10,000 16,700 March 12,800 15,200 April 11,000 15,920 May 16,000 21,200 June 14,000 18,080 Compute the fixed cost portion using the High-Low Method of estimating costs. A. $9,200 B. $10,000 C. $18,400 D. $17,500

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

See similar textbooks

Similar questions

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.
Please provide answer
need answer please
Could you please answer all the reuired fields correctly.
What would be the best equation using the high-low method?
I want to answer this question
Juan Company considers repairs and maintenance (R&M) to be a mixed cost. Over the past five months they've had the following R&M costs: Month Units Produced Total R&M cost February 400 $5, 680 March 350 $4, 800 April 870 $6, 900 May 300 $4, 890 June 800 $7,350 Using the High-Low method calculate the expected cost of R&M for July assuming they expect 1,000 units to be produced
Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to calculate Bounty' variable utilities costs per machine hour. Round your answer to the nearest cent. March April May June Cost $3,100 2,700 2,900 3,600 Machine Hours 15.000 10,000 12,000 18,000
Please give me answer the question
please answer in 30 minutes.
Harbor Images has collected the following cost data for various levels of activity: Images Created Total Cost $5,700 $6,320 $9,210 $5,250 Month 6,000 7,750 8,100 4,500 August September October November a. Using the high-low method, determine the variable cost per image created and the total fixed cost. (Round your variable cost to 2 decimal places.) Variable Cost Per Image Fixed Cost Per Month b. Estimate the total costs when 6,500 images are created. (Do not round your intermediate calculations.) Total Costs
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Repair-Hour $ 16.00 $ 7.20 $ 0.40 $ 1.70 per Month $ 21,400 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses $ 2,700 $ 5,790 $ 4,680 $ 3,890 Rent Administrative expenses $ 0.80 For example, wages and salaries should be $21,400 plus $16.00 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,700 repair-hours. The company expects its sales to be $52.00 per repair-hour. Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net…