60 Smith Company is attempting to develop the cost function for repair costs The following past data are available Machine Hours 4,800 3,400 4,000 5,900 Repair Costs $6,385 4,585 5,285 7,085 Using the high low method, what is the variable repair cost per machine hour a) $0 15 b) $1 00 c) $4 00 d) $5 00 Answer b Difficulty Easy Learning Objective Describe cost estimation techniques CPA Management Accounting Problem Solving and Decision Making Bloomcode Application 61 Smith Company is attempting to develop the cost function for repair costs The following past data are available Machine Hours Repair Costs 4,800 3,400 ,000 ,900 $6,385 4,585 5,285 7,085 Using the high low method, what is the ixed repair coet a) $1,185 b) $850 c)$475 d) $565 Answer a Difficulty Easy Learning Objective Describe cost estimation techniques CPA Management Aocounting Problem Solving and Decision Making Bloomcode Application 62 Smith Company is attempting to develop the cost function for repair costs The following past data are available 4,800 3,400 4,000 ,900 $6,385 4,585 5,285 7,085 Using the high low method, what is the estimated repair cost for 4,500 machine hours a) $5,785 b) $5,585 c) $5,685 d) $5,985 Answer c Difficulty Medium Learning Objective Describe cost estimation techniques CPA Management Accounting Problem Solving and Decision Making Bloomcode Application 63 Milano Company has an average overhead oost per hour of $10 50 at 3,500 machine hours and at 3,000 hours it is $11 25 The company managers wish to estimate the function What is the variable overhead cost per machine hour overhead cost a) $1 00 b) $2 00 c) $6 00 d) $8 00 Answer Difficulty Easy Learning Objective Desaribe cost estimation techniques CPA Management Aocounting Problem Solving and Decision Making Bloomcode Applicatiorn 64 Milano Company has an average overhead cost per hour of $10 50 at 3,500 machine hours and at 3,000 hours it is $11 25 The company managers wish to estimate the overhead cost function What is the fixed overhead cost a) $15,750 b) $36,750 c) $21,000 d) $18,000 Answer Difficulty Easy Learning Objective Describe cost estimation techniques CPA Management Accounting Problem Solving and Decision Making

Question

60  Smith Company is attempting to develop the cost function for repair costs  The following past data are available  Machine Hours 4,800 3,400 4,000 5,900 Repair Costs $6,385 4,585 5,285 7,085 Using the high low method, what is the variable repair cost per machine hour  a) $0 15 b) $1 00 c) $4 00 d) $5 00 Answer  b Difficulty  Easy Learning Objective  Describe cost estimation techniques CPA  Management Accounting Problem Solving and Decision Making Bloomcode  Application 61  Smith Company is attempting to develop the cost function for repair costs  The following past data are available  Machine Hours Repair Costs 4,800 3,400 ,000 ,900 $6,385 4,585 5,285 7,085 Using the high low method, what is the ixed repair coet  a) $1,185 b) $850 c)$475 d) $565 Answer a Difficulty  Easy Learning Objective  Describe cost estimation techniques  CPA  Management Aocounting Problem Solving and Decision Making Bloomcode  Application 62  Smith Company is attempting to develop the cost function for repair costs  The following past data are available  4,800 3,400 4,000 ,900 $6,385 4,585 5,285 7,085 Using the high low method, what is the estimated repair cost for 4,500 machine hours  a) $5,785 b) $5,585 c) $5,685 d) $5,985 Answer  c Difficulty  Medium Learning Objective  Describe cost estimation techniques  CPA  Management Accounting Problem Solving and Decision Making Bloomcode  Application 63  Milano Company has an average overhead oost per hour of $10 50 at 3,500 machine hours and at 3,000 hours it is $11 25  The company managers wish to estimate the function  What is the variable overhead cost per machine hour  overhead cost a) $1 00 b) $2 00 c) $6 00 d) $8 00 Answer  Difficulty  Easy Learning Objective  Desaribe cost estimation techniques  CPA  Management Aocounting Problem Solving and Decision Making Bloomcode  Applicatiorn 64  Milano Company has an average overhead cost per hour of $10 50 at 3,500 machine hours and at 3,000 hours it is $11 25  The company managers wish to estimate the overhead cost function  What is the fixed overhead cost  a) $15,750 b) $36,750 c) $21,000 d) $18,000 Answer  Difficulty  Easy Learning Objective  Describe cost estimation techniques  CPA  Management Accounting Problem Solving and Decision Making

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60. Smith Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hours 4,800 3,400 4,000 5,900

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