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Can someone explain this to me? Thank you Chen Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best
Can someone explain this to me? Thank you
Chen Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow: Click tho icon to view the data.) Road the requirements Requirement 1. What is the variable utilities cost per machine hour? Let's begin by determining the formula that is used to calculate the variable cost (slope). Change in cost Change in volume = Variable cost (slope) + Data Table (Round the variable cost to the nearest cont.) Using the high-low method, the variable utilities cost per machine hour is Month Machine Hours 1,090 1.100 Total Cost January ....S 3,420 February .. S 3,780 March ......S 3,467 April ...... 3,720 May S 4,200 June S 4,232 1.010 1.210 1,320 1460 Print Dane Enter any number in the edit fields and then click Check Answer. ? parts 3 remaining 3 Clear All CheckStep by Step Solution
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