Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirements Using the high-low method, answer the following questions 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost

image text in transcribed
image text in transcribed
Requirements Using the high-low method, answer the following questions 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Summerville Company uses 1,210 machine hours in a month, what will its total costs be? Requirement 1. What is the variable utilities cost per machine hour? Data Table Let's begin by determining the formula that is used to calculate the variable cost (slope) Variable cost (slope) : Month Total Cost Round the variable cost to the nearest cent.) Using the high Jow method, the variable utlities cost per machine hour is S Requirement 2. What is the fixed cost of utilitios each month? Let's begin by determining the formula that is used to calculate the fixed cost component January Fobruary 3,760 March ..3,532 April May June Machine Hour 1,090 1,120 1,080 1,220 1,330 1,480 $ 3,420 $ 3,720 $ 4,800 $ 4,192 Fixed cost I Icinn the hinh lw methnd the fivad rost of iutiltios oarh month ie Print Done Choose from any list or enter any number in the input fields and then continue to the ne Summerville Company The company's cost and machine hour usage data for the first six months of the year follow y, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost (Click the icon to view the data) Requirements Using the high-low method, answer the following questions 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of ubilities each month? 3. If Summerville Company uses 1,210 machine hours in a month, what will ts total costs be? Round the variable cost to the nearest cent) Using the high-low method, the variable utilities cost per machine hour is $ Requirement 2. What is the fixed cost of utilities each month? Let's begin by determining the formula that is used to calculate the foxed cost component. Fixed cost Using the high-low method, the fixed cost of utlities each month is $ equirement 3. If Summerville Company uses 1,210 machine hours in a month, what will ts total costs be? (Round the variable cost per uni to two decimal places and round your total costs calculation to the nearest whole dollar) The total costs when 1.210 machine hours are used iss hoose from any list or enter any number in the input fields and then continue to the next

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

More Books

Students also viewed these Accounting questions

Question

List and explain four key issues in designing a questionnaire.

Answered: 1 week ago