Travis Metals heats copper ingots to a high temperature by placing them in a large oven. The heated Ingots are then run through a shaping machine that forms them into wire. Due to the length of time it takes the oven to heat up, it is never turned off. When the ingots are placed in the oven the temperature is raised to a higher level. Once they are done being heated the oven temperature is turned back down until a new batch of Ingots is ready to be heated. The following Information shows the ingots processed and the power costs over the past 10 months. Month January February March April May June July August September October Ingots Power Cost 124 104 94 114 144 134 84 74 64 54 Total power costs $6,060 $5,060 $4,960 $5,560 $6,560 $6,160 $4,560 $3,760 $3,960 $2,960 Required: 2. Using the high-low method, estimate a cost formula for power costs. Express the formula in the form Y = a + bx. X 3. Predict total power costs in a month when 154 ingots are processed.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Travis Metals heats copper ingots to a high temperature by placing them in a large oven. The heated ingots are then run
through a shaping machine that forms them into wire. Due to the length of time it takes the oven to heat up, it is never
turned off. When the ingots are placed in the oven the temperature is raised to a higher level. Once they are done being
heated the oven temperature is turned back down until a new batch of ingots is ready to be heated. The following
information shows the ingots processed and the power costs over the past 10 months.
Month
January
February
March
April
May
June
July
August
September
October
Ingots Power Cost
124
104
94
114
144
134
84
74
64
54
$6,060
$5,060
$4,960
$5,560
Total power costs
$6,560
$6,160
$4,560
$3,760
$3,960
$2,960
Required:
2. Using the high-low method, estimate a cost formula for power costs. Express the formula in the form Y = a + bx.
X
3. Predict total power costs in a month when 154 ingots are processed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8c28153-e825-4c56-864b-d7c0a22d6c1c%2F733a0649-9134-4747-8d4f-e86b5d7f89a0%2F94rc4em_processed.png&w=3840&q=75)
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