Question
I need help with the following problem solving as I am not too keen on high-low methods to make sure I am doing it correctly.
I need help with the following problem solving as I am not too keen on high-low methods to make sure I am doing it correctly. If you can help show the work so I know where I could learn from.
The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variable costs in the organization. The managerial accountant reported the following information:
Sunny Manufacturing
Cost Report
January - June 20XX
Month Machine-Hours Total Costs
January 1,800 $21,500
February 2,900 $23,200
March 1,000 $19,750
April 2,400 $21,000
May 3,400 $23,900
Use the high-low method to determine the cost equation and use machine hours as the base for a cost driver in the analysis.
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