XXX Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow. SEE THE APPLICABLE DATA ON THE SCREENSHOT
Requirements
Using the high-low method, answer the following questions:
| 1.What is the variable utilities cost per machine hour? | |
| 2.What is the fixed cost of utilities each month? | |
| 3.If Jungemann Company uses 1,220 machine hours in a month, what will its total costs be? |
Jungemann Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow (Click the icon to view the data.) Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? -X 3. If Jungemann Company uses 1,220 machine hours in a month, what will its total costs be? Data Table Month Total Cost Requirement 1. What is the variable utilities cost per machine hour? Determine the formula that is used to calculate the variable cost (slope). Choose the correct answer below. Machine Hours 1,040 3,228 3.770 1,110 January ...... February... S March S April ........S May S O A. Highest costHighest volume = Variable cost (slope) OB. Tolal operating cost - Total variable cost = Variable cost (slope) O C. Lowest cost Lowest volume=Variable cost (slope) OD. Change in volume Change in cost = Variable cost (slope) O E. Change in cost+Change in volume = Variable cost (slope) 1,070 3,450 3,790 4,500 4,848 1,210 1,330 1,640 June .......S Using the high-low method, the variable utilities cost per machine hour is (Round the variable cost to the nearest cent.) () Requirement 2. What is the fixed cost of utilities each month? Determine the formula that is used to calculate the fixed cost component. Choose the correct answer below. Print Done O = A. Change in cost+Change in volume = Fixed cost OB. Total operating cost-Total variable cost=Fixed cost O C. Highest volume - lowest volume = Fixed cost OD. Change in volume + Change in cost = Variable cost (slope) Time Remaining: 02:26:45 Next Jungemann Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the first six months of the year follow E (Click the icon to view the data.) Requirements Using the high-low method, answer the following questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Jungemann Company uses 1,220 machine hours in a month, what will its total costs be? RED O C. Lowest cost Lowest volume = Variable cost (slope) OD. Change in volume Change in cost = Variable cost (slope) O E. Change in cost + Change in volume = Variable cost (slope) Using the high-low method, the variable utilities cost per machine hour is 5 (Round the variable cost to the nearest cent.) Requirement 2. What is the fixed cost of utilities each month? Determine the formula that is used to calculate the fixed cost component. Choose the correct answer below O A. Change in cost + Change in volume = Fixed cost OB. Total operating cost - Total variable cost = Fixed cost O C. Highest volume - lowest volume = Fixed post OD. Change in volume+Change in cost=Variable cost (slope) O E. Highest cost - lowest cost = Fixed cost Using the high-low method, the fixed cost of utilities each month is $(Round the total variable costs to the nearest whole dollar.) Requirement 3. If Jungemann Company uses 1,220 machine hours in a month, what will its total costs be? The total costs when 1,220 machine hours are incurred is $ (Round your interim and final calculations to the nearest whole dollar.) Time Remaining: 02:26:15 Next
