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i want to confirm if this is correct ? 1. HIGH-LOW METHOD Varnava Corporation's activity for the first five months of 2012 was as follows:
i want to confirm if this is correct ?
1. HIGH-LOW METHOD Varnava Corporation's activity for the first five months of 2012 was as follows: Machine Hours Electrical Cost January 1.100 $12,400 February 1,400 $13,300 March 1,300 $13,000 April 1,500 $13,500 May 1,200 $12,700 (a) Compute the variable cost per hour. variable cost = [ 13, 500 - 12,000] / (1500-1, 100 ) = || 00/400 = 2.75 = 2.75 per machine how (b) Compute the total fixed cost component. 13 soo-CISO x 2.750 = 13, 500 4125= 9,375 - (c) Compute the total electrical cost for June when activity is 1,800 machine hours. 9, 375+ (18004 2.25) = 14,325 Step by Step Solution
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