Case 1: ANDERSON COMPANY Data have been accumulated for a material handling activity. The plant manager believes that the number of material moves is a good activity driver for the activity. Assume that the accounting records of Anderson Company disclose the following materials handling costs and number of materials moves for the past 10 months: Month January Number of Moves February March April May June July August September October Materials Handling Cost $2,000 3,090 2,780 1,990 7,500 5,300 4,300 6,300 5,600 6,240 100 125 175 200 500 300 250 400 475 425 Required: Evaluate the case facts using High-Low Method of separating mixed cost and determine the following: 1. Variable Cost per move 2. Total Fixed Cost 3. Cost Equation 4. Total variable cost if there are 375 material moves. 5. Total materials handling cost for an activity level with 465 material moves. Case 2: TERI HONG SALON Teri Hong opened a tanning salon in a new shopping center. She had anticipated that the costs for the tanning service would be primarily fixed, but she found that tanning salon costs increased with the number of visits. Costs for this service over the past nine months are as follows: Month Tanning Visits March 700 Total Cost $2,628 April 1,500 4,000 May 3,100 6,564 June 1,700 4,205 July 2,300 5,350 August 1,800 4,000 September 1,400 3,775 October 1,200 2,800 November 2,000 4,765 Required: Evaluate the case facts using High-Low Method of separating mixed cost and determine the following: 1. Variable Cost per visit 2. Total Fixed Cost 3. Cost Equation 4. Total variable cost if there are 1,450 tanning visits. 5. Total materials handling cost for an activity level with 1,465 tanning visits.