Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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: Month January February March April May June Pints of Applesauce Produced 112,000 70,000 73,000 79,000 97,000 103,000 127,000 97,000 97,000 91,000 130,000 124,000 Energy Cost $70,900 62,200 67,400 68,400 69,400 70,400 70,600 69,100 69,700 68,800 73,000 71,550 July August September October November December Required: 1. Use the high-low method to estimate the company's energy 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 81,000 pints of applesauce are produced. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. (Round coefficient of X to 2 decimal places.) Total energy cost = Required 1 Required 2 >

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_2

Step: 3

blur-text-image_3

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

Auditing Principles And Practice

Authors: Kumar And Sharma

3rd Edition

8120350987, 9788120350984

More Books

Students also viewed these Accounting questions

Question

Describe the job youd like to be doing five years from now.

Answered: 1 week ago

Question

So what disadvantages have you witnessed? (specific)

Answered: 1 week ago