Question
The following data relates to monthly costs for the production of mobile phones: Units 5,000 8,000 Rent $44,000 $44,000 Supervisors' Wages $8,400 $8,400 Electricity $174,000
The following data relates to monthly costs for the production of mobile phones:
| Units | 5,000 | 8,000 |
| Rent | $44,000 | $44,000 |
| Supervisors' Wages | $8,400 | $8,400 |
| Electricity | $174,000 | $264,000 |
| Materials | $160,000 | $256,000 |
| Labor | $156,000 | $216,000 |
| Administration Costs | $82,000 | $88,000 |
| Selling and Distribution Costs | $60,000 | $60,000 |
Required:
Identify whether each cost is:
- fixed, variable
- semi-variable
Using the high-low method and calculating the fixed and variable elements of each.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To determine whether each cost is fixed variable or semivariable we can use the highlow method The h...
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
