Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lindani cc is preparing its budget for the year to 31 December 2017. The following information was prepared: Machine hours Fuel Expense Month 000 R

image text in transcribed

Lindani cc is preparing its budget for the year to 31 December 2017. The following information was prepared: Machine hours Fuel Expense Month "000 R '000 January 20,40 R 384,00 February 18,00 R 372,00 March 20,40 R 372,00 April 23,40 R 354,00 May 25,20 R 300,00 June 19,20 R 318,00 July 15,60 R 300,00 August 15,60 R 300,00 September 18,60 R 318,00 October 21,00 R 330,00 November 25,80 R 348,00 December 28,80 R 408,00 Total 252,00 R 4 104,00 Average 21,00 R 342,00 Required: Estimate the fixed and variable components of fuel expense using the above data by applying the: 2.1 High-low method (9 marks)

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

Step: 3

blur-text-image

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

Corporate Risk Management

Authors: Faisal F. Al-Thani, Tony Merna

2nd Edition

0470518332, 978-0470518335

More Books

Students also viewed these Accounting questions

Question

When finding liquid flow, what does the variable N represent?

Answered: 1 week ago

Question

What is organizational flattening? Why is it practiced?

Answered: 1 week ago