FINANCIAL & MANAGERIAL ACCOUNTING (LL)(W
9th Edition
ISBN: 9781265464103
Author: Wild
Publisher: MCG
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Question
Chapter 23, Problem 2BTN
To determine
Memo:
To: The Manager of G Company
From: XYZ
Subject: To outline what the company’s management must consider when deciding whether to discontinue its hardware department.
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Given the following costs and activities for Dance Company, use
the high-low method to calculate Dance's variable electrical
costs per machine hour.
Costs Machine Hours
August
$11,700 15,000
September 13,200 17,500
October 11,400 14,500
overhead application rate
Total costs were $77,400 when 30,000 units were produced
and $90,900 when 36,000 units were produced. Use the high-
low method to find the estimated total costs for a production
level of 32,000 units.
Chapter 23 Solutions
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