High-Low Method: This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows: Variable cost per unit = ( High Cost - Low Cost ) ( High units - low units ) The formula to calculate the Fixed Cost is as follows: Fixed Cost = Total cost - (Units × Variable cost per unit) Requirement-1: To show : The estimated line of cost behavior

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem 4QS

To determine

Concept Introduction:

High-Low Method:

This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows:

$\begin{array}{l} Variable cost per unit = \frac{(High Cost - Low Cost)}{(High units - low units)} \end{array}$

The formula to calculate the Fixed Cost is as follows:

$Fixed Cost = Total cost - (Units \times Variable cost per unit)$

Requirement-1:

To show: The estimated line of cost behavior

To determine

Requirement-2:

To calculate: The fixed and variable components of maintenance cost

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

How many units must be sold to reach this profit goal ? General accounting

Subject:-- general accoun

Sub. General accounting

Answer 2

Question

Chapter 21, Problem 4QS

To determine

Concept Introduction:

High-Low Method:

This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows:

$\begin{array}{l} Variable cost per unit = \frac{(High Cost - Low Cost)}{(High units - low units)} \end{array}$

The formula to calculate the Fixed Cost is as follows:

$Fixed Cost = Total cost - (Units \times Variable cost per unit)$

Requirement-1:

To show: The estimated line of cost behavior

To determine

Requirement-2:

To calculate: The fixed and variable components of maintenance cost

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem 4QS

To determine

Concept Introduction:

High-Low Method:

This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows:

$\begin{array}{l} Variable cost per unit = \frac{(High Cost - Low Cost)}{(High units - low units)} \end{array}$

The formula to calculate the Fixed Cost is as follows:

$Fixed Cost = Total cost - (Units \times Variable cost per unit)$

Requirement-1:

To show: The estimated line of cost behavior

To determine

Requirement-2:

To calculate: The fixed and variable components of maintenance cost

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 4QS

To determine

Concept Introduction:

High-Low Method:

This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows:

$\begin{array}{l} Variable cost per unit = \frac{(High Cost - Low Cost)}{(High units - low units)} \end{array}$

The formula to calculate the Fixed Cost is as follows:

$Fixed Cost = Total cost - (Units \times Variable cost per unit)$

Requirement-1:

To show: The estimated line of cost behavior

To determine

Requirement-2:

To calculate: The fixed and variable components of maintenance cost

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem 4QS

To determine

Concept Introduction:

High-Low Method:

This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows:

$\begin{array}{l} Variable cost per unit = \frac{(High Cost - Low Cost)}{(High units - low units)} \end{array}$

The formula to calculate the Fixed Cost is as follows:

$Fixed Cost = Total cost - (Units \times Variable cost per unit)$

Requirement-1:

To show: The estimated line of cost behavior

To determine

Requirement-2:

To calculate: The fixed and variable components of maintenance cost

Answer 6

Chapter 21, Problem 4QS

To determine

Concept Introduction:

High-Low Method:

This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows:

$\begin{array}{l} Variable cost per unit = \frac{(High Cost - Low Cost)}{(High units - low units)} \end{array}$

The formula to calculate the Fixed Cost is as follows:

$Fixed Cost = Total cost - (Units \times Variable cost per unit)$

Requirement-1:

To show: The estimated line of cost behavior

Answer 7

Chapter 21, Problem 4QS

To determine

Concept Introduction:

High-Low Method:

This method is used to determine the fixed as well as variable part of the mixed cost. The formula for calculation of variable cost per unit is as follows:

$\begin{array}{l} Variable cost per unit = \frac{(High Cost - Low Cost)}{(High units - low units)} \end{array}$

The formula to calculate the Fixed Cost is as follows:

$Fixed Cost = Total cost - (Units \times Variable cost per unit)$

Requirement-1:

To show: The estimated line of cost behavior

Answer 8

To determine

Requirement-2:

To calculate: The fixed and variable components of maintenance cost

Answer 9

To determine

Requirement-2:

To calculate: The fixed and variable components of maintenance cost

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 21 - Prob. 1DQ Ch. 21 - Prob. 2DQ Ch. 21 - When output volume increases, do fixed costs per...Ch. 21 - Prob. 4DQ Ch. 21 - Prob. 5DQ Ch. 21 - Describe the contribution margin ratio in...Ch. 21 - Prob. 7DQ Ch. 21 - Prob. 8DQ Ch. 21 - Prob. 9DQ Ch. 21 - Prob. 10DQ

Requirement-2: To calculate: The fixed and variable components of maintenance cost

Want to see the full answer?

Chapter 21 Solutions

Requirement-2:

To calculate: The fixed and variable components of maintenance cost