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Melissa Fernando, president of Ice Break Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: E: (Click the icon to view the data.) Requirements 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,200 and support costs were $16,000. 3. A least-squares regression analysis gave the following output: Regression equation: Y = $3,915 + $8.65X What recommendations would you give the president based on these analyses? Requirement 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. (Enter the variable cost per machine hour to the nearest cent.) The variable support cost amounts to $ 7.5 per machine hour and the fixed support cost amounts to $ 5250 per month using the high-low method. Requirement 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,200 and support costs were $16,000. The high-low method uses V to determine the cost function. Since the new October data there would all activity levels Data Table all cost levels the highest and lowest activity levels the highest and lowest cost levels Month Machine Hours Support Costs 900 $ 10,200 May June 1,300 15,000 Click to select your answer(s), then click Check Answer. July 1,100 14,800 500 9,000 2 parts August September Final Check remaining 700 9,500 FAM3-A2 (similar to) Question Help Melissa Fernando, president of Ice Break Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available: (Click the icon to view the data.) 2 Requirements 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,200 and support costs were $16,000. 3. A least-squares regression analysis gave the following output: Regression equation: Y = $3,915 + $8.65X What recommendations would you give the president based on these analyses? Requirement 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. (Enter the variable cost per machine hour to the nearest cent.) The variable support cost amounts to $ 7.5 per machine hour and the fixed support cost amounts to $ 5250 per month using the high-low method. Requirement 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,200 and support costs were $16,000. The high-low method uses to determine the cost function. Since the new October data there would Data Table for machine hours does not change either the highest or lowest level for support costs creates a new high level for support costs does not change either the highest or lowest level provides an additional data point Month Machine Hours Support May 900 $ June 1,300 15,000 1,100 Click to select your answer(s), then click Check Answer. July August September 14,800 9,000 ? 500 700 9,500 parts remaining Final Check % FAM3-A2 (similar to) Question Help fixed and how much is variable. The following data Melissa Fernando, president of Ice Break Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost are the only records available: (Click the icon to view the data.) Requirements 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,200 and support costs were $16,000. 3. A least-squares regression analysis gave the following output: Regression equation: Y = $3,915 + $8.65X What recommendations would you give the president based on these analyses? Requirement 1. Find monthly fixed support cost and the variable support cost per machine hour by the high-low method. (Enter the variable cost per machine hour to the nearest cent.) The variable support cost amounts to $ 7.5 per machine hour and the fixed support cost amounts to $ 5250 per month using the high-low method. Requirement 2. Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,200 and support costs were $16,000. The high-low method uses to determine the cost function. Since the new October data there would Data Table be no change in the analysis. likely be a change in one or both costs calculated in requirement onth Machine Hours Support Costs May 900 $ 10,200 June 1,300 15,000 1,100 Click to select your answer(s), then click Check Answer. July August September 14,800 9,000 ? 500 700 9,500 parts remaining Final Check