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just looking for V and F for fuel and oil for forklifts High-Low Method, Cost Formulas The controler of the South Charleston plant of Ravinia,
just looking for V and F for fuel and oil for forklifts
High-Low Method, Cost Formulas The controler of the South Charleston plant of Ravinia, Inc, monitored activities associated with material handing costs. The Night and low levels of resource usage occurred in September and March for three different resources associated with materials handing. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two diferent levels, are presented as follows: Resource Number of Moves Total Cost Forlan depreciation: Low High 5,000 20.000 $2,400 2.400 Indirect labor Low 5.000 20,000 154.000 148,000 High Fuel and oil for Forklift Low 5,000 $3,450 High 20,000 13.800 Required: If required, round your answers to two decimal places. Enter a "0" if required. 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. Forklift depreciation: V 0 F 2,400 Y 2,400 Indirect labor: V 5.6 F 36,000 Y 36,000 + $ 5.6 X Fuel and oil for forklift: V F Y 0.69 X 2. Using your knowledge of cost behavior, predict the cost of each item for an activity out level of 11,000 moves. Forklift depreciation 2,400 Indirect labor 97,600 Fuel and oil for forklift 7,590 Step by Step Solution
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