Question
Rawabi Company incurred the following costs and machine hours during the last three months of the current year 2019: Type of cost 10 11 12
Rawabi Company incurred the following costs and machine hours during the last three months of the current year 2019:
| Type of cost | 10 | 11 | 12 |
| 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 Rawabi had a total cost in January 2020 of $60,000, how many machine hours did they incur during January?
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Financial And Managerial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
5th Edition
