Question
The controller of Oriole Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total Machine
The controller of Oriole Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.
Total Electricity Costs Total Machine Hours
January $2580 240
February 2920 380
March 3580 470
April 4750 695
May 3250 410
June 4880 790
July 4060 620
August 3880 570
September 5060 675
October 4210 620
November 3370 380
December 6570 810
What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? By what amount does this differ from June's observed cost for 790 machine hours?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
