Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Matt owns a machine shop. In reviewing the shop's utility bills for the past 1 2 months, he found that the highest bill of $

Matt owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of $2,600 occurred in August when the machines worked 1,400 machine hours. The lowest utility bill of $2,300 occurred in December when the machines worked 900 machine hours.
Read the requirements.
Requirement 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost.
First, calculate the variable cost per machine hour. Select the formula labels, then enter the amounts and compute the variable cost per machine hour. (Use the high-low method. Round your answer to the nearest cent.)
[,]= Variable cost per machine hour
Requirements
Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost.
Show the equation for determining the total utility cost for the machine shop.
If Matt anticipates using 1,000 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2.
image text in transcribed

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

A Practical Guide To UK Accounting And Auditing Standards

Authors: Steve Collings

1st Edition

152650331X, 9781526503312

More Books

Students also viewed these Accounting questions

Question

3.4 Define HRIS and describe its main components.

Answered: 1 week ago