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 188,000 hours of activity, Cost A totaled $2,626,000. At 115,333 hours, the low point during the period, Cost C totaled $1,506,000; at 208,000 hours, the high point, Cost C's fixed portion amounted to $2.25 per hour. At 152,000 hours of activity, the sum of Costs A, B, and C amounted to $8,178,000. Required: A. Compute the variable portion (total) of Cost C at 115,333 hours of activity. B. Compute Cost C (total) at 152,000 hours of activity. C. Compute Cost B (total) at 152,000 hours of activity.
Variable portion of cost C?
Total cost C?
Total cost B?
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