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.

Question

Want to see the full answer?

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Budgeted overhead for Galaxy Manufacturing at the normal capacity of 40,000 direct labor hours is $7 per hour variable and $5 per hour fixed. In April, $460,000 of overhead was incurred while working 41,500 actual hours, when 42,000 standard hours were allowed. What is the overhead controllable variance?

Desert Rose Electronics implemented a new returns authorization process. Returns require: inspection code (45% weighting), testing report (35% weighting), customer details (20% weighting). If a return scored 38 on inspection, 42 on testing, and 85 on customer details, your task is to identify the weighted acceptance score. Need answer

What is its profit margin

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Concept explainers

Videos

Want to see the full answer?

Chapter 22 Solutions