Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

English Mattey Bread Company (Mattey) bakes loaves of bread. The monthly equipment maintenance cost for Mattey is considered to be a mixed cost. The

image text in transcribed

English Mattey Bread Company (Mattey) bakes loaves of bread. The monthly equipment maintenance cost for Mattey is considered to be a mixed cost. The variable portion of the cost is related to the number of loaves baked. The production volume and maintenance costs for the past six months are presented below. Mattey uses the high-low method to separate mixed costs into its fixed and variable portions. Month Volume of Production (Number of Loaves) Equipment Maintenance Costs January February March April May June 281,000 $5,449 203,000 $4,552 322,000 $5,920 58,000 $2,886 562,000 $8,677 270,000 $5,322 Do not enter dollar signs or commas in the input boxes. a) Calculate the variable rate for the equipment maintenance cost. Round your answer to 5 decimal places. Variable Cost per Unit: $ b) Calculate the fixed portion of the equipment maintenance cost. Round your answer to the nearest whole number. Fixed Cost: $ c) Assume that 420,000 loaves is the budgeted production level for June. Using the results of the high-low method in parts a) and b), what is the expected total equipment maintenance cost for June? Round your answer to 2 decimal places. Expected total equipment maintenance cost for June: $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

9th edition

290-1259222138, 1259222136, 978-1259222139

More Books

Students also viewed these Accounting questions

Question

What is the speed of an election whose kinetic energy is 1.00 MeV?

Answered: 1 week ago