Question
T.L. Franklin Corporation has three costs: A, which is variable; B, which is fixed; and C, which is semivariable. The company uses the high-low method
T.L. Franklin Corporation has three costs: A, which is variable; B, which is fixed; and C, which is semivariable. The company uses the high-low method and extracted the following data from its accounting records: At 199,000 hours of activity, Cost A totaled $2,648,000. At 106,832 hours, the low point during the period, Cost C totaled $1,517,000; at 219,000 hours, the high point, Cost C's fixed portion amounted to $2.00 per hour. At 141,000 hours of activity, the sum of Costs A, B, and C amounted to $8,200,000. Required: Compute the variable portion (total) of Cost C at 106,832 hours of activity. Compute Cost C (total) at 141,000 hours of activity. Compute Cost B (total) at 141,000 hours of activity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started