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? a. $435.50 b. $485.00 c. $590.00 d. $800.00

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 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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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?
a. $435.50
b. $485.00
c. $590.00
d. $800.00
Transcribed Image Text: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? a. $435.50 b. $485.00 c. $590.00 d. $800.00
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