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 182,000 hours of activity, Cost A totaled $2,614,000.
At 124,464 hours, the low point during the period, Cost C totaled $1,500,000; at 202,000 hours, the high point, Cost C's fixed portion amounted to $2.25 per hour.
At 158,000 hours of activity, the sum of Costs A, B, and C amounted to $8,166,000.
Required: A. Compute the variable portion (total) of Cost C at 124,464 hours of activity. B. Compute Cost C (total) at 158,000 hours of activity. C. Compute Cost B (total) at 158,000 hours of activity. For all requirements, do not round intermediate calculations. Round your final answers to the nearest dollar amount.
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