Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The manager of Quality Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,100 for 1,100 inspections to $3,700

image text in transcribed

The manager of Quality Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,100 for 1,100 inspections to $3,700 for 700 inspections. Read the requirements. Requirement 1. Use the high-low method to calculate the variable cost per inspection. Select the formula and enter the amounts to calculate the variable cost per inspection. (Round to the nearest cent.) | Change in total cost 400 Change in volume of activity 400 = Variable cost per inspection = $ 1.00 $ Requirement 2. Calculate the total fixed costs. Select the formula and enter the amounts to calculate the total fixed costs. (Use the highest volume and its mixed cost to calculate the total fixed cost.) Change in total cost Variable cost per inspection Total fixed cost 4700 - 2200 = 2500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting In Health Care Organizations

Authors: David W. Young

3rd Edition

1118653629, 978-1118653623

More Books

Students also viewed these Accounting questions