Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 ABC company incurred the following maintainance costs during the past 6 months Table 1 Months 1 2 3 4 5 6 7 Machine

image text in transcribed
Question 1 ABC company incurred the following maintainance costs during the past 6 months Table 1 Months 1 2 3 4 5 6 7 Machine hours 2200 1000 1200 1600 1300 1900 2000 2300 500 Cost 8560 4200 5920 6280 4020 7020 8400 9500 2000 9 REQUIRED Question 1 1. Use a scatter graph and the two points that seem to best represent the relationship between cost and activity levels of 1000 and 2000 machine hours. Use these two points , estimate the variable cost and the fixed cost [components of maintenance costs] 2. Develop a cost function that the company can use to estimate maintenance cost at different volume levels 3. Estimate maintenance costs for July if the company expects to use 2800 machine hours Question 2 A. Use the data on Table 1, estimate the variable and fixed cost of the company using the high and low method B. Develop a cost function for the company. C. Estimate the maintenance cost if 3000 machine hours were used in July Question 3 D. Use the data on Table 1, estimate the variable and fixed cost of the company using the least squares method E. Develop a cost function for the company. F. Estimate the maintenance cost if 2500 machine hours were used in July

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

Management Accounting Change Approaches And Perspectives

Authors: Chandana Alawattage, Danture Wickramasinghe

1st Edition

0415393329, 978-0415393324

More Books

Students also viewed these Accounting questions

Question

23. What causes astigmatismpg109

Answered: 1 week ago