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The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage
The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows:
Resource Number of Moves Total Cost
Forklift depreciation:
Low $
High
Indirect labor:
Low $
High
Fuel and oil for forklift:
Low $
High
Required:
If required, round your answers to two decimal places. Enter a if required.
Determine the cost behavior formula of each resource. Use the highlow method to assess the fixed and variable components.
Forklift depreciation:
V $fill in the blank
F $fill in the blank
Y $fill in the blank
Indirect labor:
V $fill in the blank
F $fill in the blank
Y $fill in the blank
$fill in the blank
X
Fuel and oil for forklift:
V $fill in the blank
F $fill in the blank
Y $fill in the blank
X
Using your knowledge of cost behavior, predict the cost of each item for an activity output level of moves.
Forklift depreciation $fill in the blank
Indirect labor $fill in the blank
Fuel and oil for forklift $fill in the blank
Construct a cost formula that can be used to predict the total cost of the three resources combined. If required, round your answers to two decimal places.
Materials handling cost $fill in the blank
$fill in the blank
X
Using this formula, predict the total materials handling cost if activity output is moves.
Y $fill in the blank
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