Question
The controller of Carla Vista Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total
The controller of Carla Vista Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.
Total Electricity Costs | Total Machine Hours | |||||||
---|---|---|---|---|---|---|---|---|
January | $2,450 | 270 | ||||||
February | 3,100 | 320 | ||||||
March | 3,570 | 450 | ||||||
April | 4,700 | 685 | ||||||
May | 3,240 | 400 | ||||||
June | 4,870 | 800 | ||||||
July | 4,120 | 650 | ||||||
August | 3,950 | 580 | ||||||
September | 5,020 | 670 | ||||||
October | 4,260 | 630 | ||||||
November | 3,250 | 320 | ||||||
December | 6,300 | 820 |
(a)
Your answer has been saved. See score details after the due date.
Determine the fixed- and variable-cost components using the high-low method.
Fixed-costs | $enter the fixed cost amount in dollars | |
---|---|---|
Variable-costs | $enter the variable cost amount in dollars |
Attempts: 1 of 1 used
(b)
What electricity cost does the cost equation estimate for a level of activity of 450 machine hours?
Electricity costs | $enter the electricity cost amount in dollars |
By what amount does this differ from Marchs observed cost for 450 machine hours?
Amount differ | $enter the difference cost amount in dollars |
Save for Later
Attempts: 0 of 1 used
Submit Answer
(c)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started