Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The controller of Cullumber Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total Machine
The controller of Cullumber Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.
Total Electricity Costs | Total Machine Hours | |||||||
January | $2,700 | 290 | ||||||
February | 2,980 | 350 | ||||||
March | 3,590 | 480 | ||||||
April | 4,620 | 690 | ||||||
May | 3,160 | 460 | ||||||
June | 5,000 | 780 | ||||||
July | 4,110 | 620 | ||||||
August | 3,910 | 510 | ||||||
September | 5,120 | 680 | ||||||
October | 4,200 | 620 | ||||||
November | 3,200 | 350 | ||||||
December | 6,270 | 800 |
Determine the fixed- and variable-cost components using the high-low method.
Fixed-costs | $ | |
Variable-costs | $ |
X Your answer is incorrect. Try again. (b) What electricity cost does the cost equation estimate for a level of activity of 460 machine hours? Electricity costs By what amount does this differ from March's observed cost for 460 machine hours? Amount differ x Your answer is incorrect. Try again. (c) What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs By what amount does this differ from June's observed cost for 790 machine hours? Amount differ the other an last exersice is Blossom provides environmentally friendly lawn services for homeowners. Its operating costs are as follows
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