Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The manager of Trusty Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,300 for 1,300 inspections to $3,900

image text in transcribedimage text in transcribed

The manager of Trusty Car Inspection reviewed the monthly operating costs for the past year. The costs ranged from $4,300 for 1,300 inspections to $3,900 for 900 inspections Read the requirements Requirement 1. 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.) Total mixed cost Total variable cost Total fixed cost 4,300 1,300 3,000 Requirement 3. Write the equation and calculate the operating costs for 1,000 inspections Select the formula and enter the amounts to calculate the operating costs for 1,000 inspections. (Enter all amounts to the nearest cent.) ( Variable cost per inspection xNumber of inspections+ Total fixed cost - Total mixed cost 1.00 1,000 3,000 4,000

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

Auditing

Authors: Alan Millichamp, John Taylor

11th Edition

1473749301, 978-1473749306

More Books

Students also viewed these Accounting questions