The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity. To calculate: The variable and fixed cost elements using the high low method.

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Answer 1

Question

Chapter 22, Problem 5E

a.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To calculate: The variable and fixed cost elements using the high low method.

b.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To prepare: A graph showing the behaviour of maintenance cost.

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Please given answer general accounting question

The following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2024: Accounts Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/24 Current assets Copyrights Royalty agreements Penske $ (700,000) 250,000 150,000 Not given 80,000 (600,000) 400,000 Investment in Stanza Liabilities Common stock Additional paid-in capital Stanza $ (400,000) 100,000 200,000 Ө 60,000 (200,000) 500,000 400,000 900,000 600,000 1,000,000 Not given (500,000) Ө (1,380,000) (600,000) ($20 par) (150,000) (200,000) ($10 par) (80,000) Note: Parentheses indicate a credit balance. On January 1, 2024, Penske acquired all of Stanza's outstanding stock for $680,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition, copyrights (with a six-year remaining life) have a $440,000 book value but a fair value of $560,000. Required: a. As of December 31, 2024, what is…

MCQ

Answer 2

Question

Chapter 22, Problem 5E

a.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To calculate: The variable and fixed cost elements using the high low method.

b.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To prepare: A graph showing the behaviour of maintenance cost.

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Answer 3

Question

Chapter 22, Problem 5E

a.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To calculate: The variable and fixed cost elements using the high low method.

b.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To prepare: A graph showing the behaviour of maintenance cost.

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Answer 4

Question

Chapter 22, Problem 5E

a.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To calculate: The variable and fixed cost elements using the high low method.

b.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To prepare: A graph showing the behaviour of maintenance cost.

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Answer 5

Chapter 22, Problem 5E

a.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To calculate: The variable and fixed cost elements using the high low method.

b.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To prepare: A graph showing the behaviour of maintenance cost.

Answer 6

Chapter 22, Problem 5E

a.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To calculate: The variable and fixed cost elements using the high low method.

Answer 7

Chapter 22, Problem 5E

a.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by considering total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To calculate: The variable and fixed cost elements using the high low method.

Answer 8

b.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To prepare: A graph showing the behaviour of maintenance cost.

Answer 9

b.

To determine

Concept Introduction:

The high Low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at the high and low activity levels. The difference between costs at high and low levels represents variable costs because the variable cost element changes with a change in the level of activity.

To prepare: A graph showing the behaviour of maintenance cost.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 22 - Prob. 1Q Ch. 22 - Prob. 2Q Ch. 22 - Prob. 3Q Ch. 22 - Prob. 4Q Ch. 22 - Prob. 5Q Ch. 22 - Prob. 6Q Ch. 22 - Prob. 7Q Ch. 22 - Prob. 8Q Ch. 22 - 9. “Cost-volume-profit (CVP) analysis is based...Ch. 22 - Prob. 10Q

Solution Summary: The author explains that the high low method is used to determine the variable cost and fixed cost from mixed costs by taking into account the total cost incurred at high and low activity levels.

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