Question
Question 3 : (10 marks) C1, B2, B3 Zee Company incurred the following costs and machine hours during the last three months of the current
Question 3: (10 marks) C1, B2, B3
Zee Company incurred the following costs and machine hours during the last three months of the current year 2020:
| Type of cost | A | B | C |
| Electricity | $22,000 | $50,000 | $12,000 |
| Depreciation | 16,000 | 16,000 | 10,000 |
| Factory supplies | 8,600 | 4,600 | 6,600 |
| Property taxes | 13,000 | 13,000 | 13,000 |
|
|
|
|
|
| Machine hours | 1,200 | 1,500 | 950 |
Instructions:
- Using the high-low method, construct a cost formula for electricity cost.
- If Zee had a total cost in January 2021 of $60,000, how many machine hours did they incur during January?
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson,
4th ISA Edition
1844806782, 9781844806782
