Using the High-Low method, compute the following items using the data below. Month Total Cost (S) Machine Hours January 425,000 12,000 February 575,000 18,000 March 495,000 15,000 April 655,000 22,000 May 340,000 8,000 What are the total fixed costs? a. $340,000 b. $160,000 c. $135,000

Using the High-Low method, compute the following items using the data below. Month Total Cost (S) Machine Hours January 425,000 12,000 February 575,000 18,000 March 495,000 15,000 April 655,000 22,000 May 340,000 8,000 What are the total fixed costs? a. $340,000 b. $160,000 c. $135,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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Question

Please provide the solution to this general accounting question using proper accounting principles.

Using the High-Low method, compute the following items using the data below.
Month Total Cost (S) Machine Hours
January 425,000
12,000
February 575,000
18,000
March 495,000
15,000
April
655,000
22,000
May
340,000
8,000
What are the total fixed costs?
a. $340,000 b. $160,000 c. $135,000

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