Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question G4 (a) The following costs have been extracted from the records of Organic-Soap Enterprise: Month Activity level Total cost Pieces RM January 14,050 540,200

Question G4

(a) The following costs have been extracted from the records of Organic-Soap Enterprise:

Month Activity level Total cost

Pieces RM

January 14,050 540,200

February 14,100 521,500

March 13,880 498,250

April 13,400 510,500

May 12,990 465,350

June 12,550 478,100

Required:

Calculate the fixed costs per month and variable cost per piece using the

High-Low method. (4 marks)

  1. A manufacturing company is searching for a method that helps to identify

variable cost per unit and fixed cost. In the last meeting, one of the

accountants suggested that High-low method should be considered. The

owner learns that you have completed a cost accounting course recently

and seeks your opinion.

Required:

Identify and discuss the possible challenges that management may face

when such method is implemented. (4 marks)

(Total 8 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

Accounting Information Systems And Internal Control

Authors: Eddy Vaassen, Roger Meuwissen, Caren Schelleman

2nd Edition

0470753951, 9780470753958

More Books

Students also viewed these Accounting questions