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Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for several
Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the company's energy cost behavior. The following costs were incurred during the past 12 months: Pints of Applesauce Month Produced Energy Cost January 123 , 000 $72, 000 February 81, 000 63,900 March 84, 090 69, 600 April 90, 000 70, 050 May 108, 000 70,500 June 114, 000 70,950 July 138, 000 71, 700 August 108 , 000 70, 200 September 108, 000 70, 800 October 102, 000 69,900 November 141, 000 74, 100 December 135, 000 72, 100 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y= a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 92,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. Required 1 Required 2Required: 1. Use the highlow method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y: a+ bX. where Ydenotes energy cost for a month and Xdenotes pints of applesauce produced. 2. Predict the energy cost for a month in which 92,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. ReqUirecl 1 Required 2 Use the highlow method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. (Round coefficient of Xto 2 decimal places.) Required 2 ) Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equation form. Use the formula Y = a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced. 2. Predict the energy cost for a month in which 92,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Predict the energy cost for a month in which 92,000 pints of applesauce are produced. Energy cost Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The reafis Brazil's national monetary unit. On the day this exercise was written. the reaiwas equivalent in value to 0.2545 US. dollar.) Miles Traveled by Month Tour Buses Cost November 15,999 18,699 reaL December 17,499 18,999 January 19,899 19,959 February 24,999 19,599 March 31,599 29,889 April 13, 599 18,999 Required: 1. Use the highlow method to estimate the variable cost per tour mile traveled and the fixed cost per month. 2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost. 3. Predict the level of maintenance cost that would be incurred during a month when 44.000 tour miles are driven. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use the highlow method to estimate the variable cost per tour mile traveled and the fixed cost per month. (Round "Variable cost per tour mile" to 3 decimal places.) Variable cost per tour mile Fixed cost per month Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Develop a formula to express the cost behavior exhibited by the company's maintenance cost. (Round "Variable cost per tour mile" to 3 decimal places.) ( Required1 Required3 ) Required 1 Required 2 Required 3 Predict the level of maintenance cost that would be incurred during a month when 44,000 tour miles are driven
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