ANSWER? You have reviewed the utility bills for yourcompany. You have determined that thehighest and lowest bills were $5,000 and$3,200 for the months of January andSeptember. If your company produced 1,050and 600 units in these months, what was thefixed cost associated with the utility bill?

Explanation of High-Low Method:The high-low method is a cost estimation technique that uses the…

Answered: You have reviewed the utility bills for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2Q: Burnham Industries incurs these costs for the month: What is the prime cost?

See similar textbooks

Similar questions

Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Can you please help with this accounting question?
What is the fixed cost per month? For this accounting question
The following monthly data are available for National Co., which produces only one product: Selling price per unit, P42; Unit variable expenses, P14; Total fixed expenses, P42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company in June?
Louis Petit, a manager of Doggone Gorgeous, Inc., was reviewing the water bills of a dog daycare and spa. He determined that its highest and lowest bills of $3,800and $2,000 were incurred in the months of May and November, respectively. If 600 dogs were washed in May and 100 dogs were washed in November, what was the fixed cost associated with the company's water bill? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) A.$ 2 comma 000 $2,000 B.$ 1 comma 800 $1,800 C.$ 1 comma 640 $1,640 D.$ 3 comma 800
Need answer
Using the high-low method Mark, owns a machine shop. In reviewing the shop’s utility bills for the past 12 months, he found that the highest bill of $2,600 occurred in August when the machines worked 1,200 machine hours. The lowest utility bill of $2,300 occurred in December when the machines worked 600 machine hours. Requirements Use the high—low method to calculate the variable cost per machine hour and the total fixed utility cost. Show the equation for determining the total utility cost for the machine shop. If Mark anticipates using 800 machine hours in January, predict the shop’s total utility bill using the equation from Requirement 2.
The following monthly data are available for Sunland Company. which produces only one product: Selling price per unit, $49; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 5000 units. How much is the margin of safety for the company for June? A. $84000 B. $1200 C. $186200 D. $42000
In July, Meers Corporation sold 3,200 units of its only product. Its total sales were $108,800, its total variable expenses were $51,200, and its total fixed expenses were $35,300. Required: a. Construct the company's contribution format income statement for July. b. Redo the company's contribution format income statement assuming that the company sells 3,650 units. Complete this question by entering your answers in the tabs below. Required a Required b Construct the company's contribution format income statement for July. Note: Do not round intermediate calculations. 0 $ 0
The following monthly data are available for Crane Company. which produces only one product: Selling price per unit, $38; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June? $9500 $1750 $42000 $84000
The following monthly data are available for Concord Corporation. which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 2000 units. How much is the margin of safety for the company for June? $84000 $1400 $42000 $26400
Benson Corporation paid one of its sales representatives $6,000 during the month of March. The rep is paid a base salary plus $12 per unit of product sold. During March, the rep sold 170 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months: Month Number of units Total variable cost Total fixed cost Total salary cost April May June July 210 120 220 130

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

You have reviewed the utility bills for your company. You have determined that the highest and lowest bills were $5,000 and $3,200 for the months of January and September. If your company produced 1,050 and 600 units in these months, what was the fixed cost associated with the utility bill?