Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

= Homework: Chap... Question 6, S20-3 (simil... Part 1 of 6 HW Score: 43.92%, 11.86 of 27 points O Points: 0 of 1 Save Montel

image text in transcribed

= Homework: Chap... Question 6, S20-3 (simil... Part 1 of 6 HW Score: 43.92%, 11.86 of 27 points O Points: 0 of 1 Save Montel owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of $2,400 occurred in August when the machines worked 1,000 machine hours. The lowest utility bill of $2,200 occurred in December when the machines worked 500 machine hours. Read the requirements. C... Requirement 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost. First, calculate the variable cost per machine hour. Select the formula labels, then enter the amounts and compute the variable cost per machine hour. (Use the high-low method. Round your answer to the nearest cent.) Variable cost per machine hour 1 Requirements 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost. 2. Show the equation for determining the total utility cost for the machine shop. 3. If Montel anticipates using 700 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2. Print Done

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

Advanced Financial Reporting And Analysis

Authors: John Dunn, Margaret Stewart

1st Edition

0470973609, 9780470973608

More Books

Students also viewed these Accounting questions

Question

Kohler Corporation reports the following components of stockholders

Answered: 1 week ago