a) Variable cost per image = Change in Cost/Change in image = (7370-5070)/(8100-3500) = 0.50
b) Fixed cost = Total cost-Variable cost = 7370-(8100*.50) = 3320
c) Total Cost = variable cost+Fixed cost = (4000*.20+3320) = 5320
25. Creative Designing has collected the following cost data for various levels of activity: Month September...
Harbor Images has collected the following cost data for various levels of activity 00 Month August September October November Images Created 5,400 7,150 7.500 3,900 Total Cost $5,580 $ 6, 200 »9.106 $ 5, a. Using the high-low method, determine the variable cost per image created and the decimal places.) Variable Coet Fixed Cost Per Image Per Month b. Estimate the total costs when 5,900 images are created. (Do not round your Total Costs
The controller of Cullumber Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. January February March April May June July August September October November December Total Total Electricity Costs Machine Hours $2,700 290 2,980 350 3,590 480 4,620 690 3,160 460 5,000 780 4,110 620 3,910 510 5,120 680 4,200 620 3,200 350 7,290 800 (a) Determine the fixed- and variable-cost components using the high-low method. Fixed-costst 4 Variable-costs जी (b) What electricity...
The controller of Rather Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total Machine Hours January $2,500 300 February 3,000 350 March 3,600 500 April 4,500 690 May 3,200 400 June 4,900 700 July 4,100 650 August 3,800 520 September 5,100 680 October 4,200 630 November 3,300 350 December 5,860 720 a) Determine the fixed- and variable-cost components using the high-low method. b) What electricity cost does the cost...
The controller of Wildhorse Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. January February March April May June July August September October November December Total Total Electricity Costs Machine Hours $2,450 230 3,060 380 3,520 480 4,760 685 3,190 410 4,910 800 4,030 650 3,870 5,040 680 4,260 3,250 6,580 820 540 610 380 (a) Determine the fixed- and variable-cost components using the high-low method. Fixed-costs Variable costs (b) What electricity cost...
High-Low Analysis and Cost Behavior Broccoli Company's total overhead costs vary considerably, from month to month, based on direct labor hours. P6A - B Month August September October November December Labor Hours 3,000 3,400 2,000 2,800 3,600 Total Overhead $234,000 249,200 196,000 226,400 256,800 Their overhead costs consist of indirect labor, supervisor's salary and maintenance. A breakdown of these costs, for the month of October (their low month of activity), follows. Indirect labor (V) Supervisor's salary (F) Maintenance (M) Total...
The following six months of data were collected on electricity cost and the number of machine hours in a factory. Month Electricity cost Machine hours June $25,160 4,500 July 26,170 4,810 August 27,250 5,120 September 26,680 5,010 October 27,950 5,430 November 27,500 5,190 Refer to Figure 3-13. An independent variable value used in calculating the cost line using the high-low method is: a.$27,950 b.4,000 c.5,430 d.$25,160
ova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours Total Overhead Cost April 49,000 $ 199,830 May 39,000 $ 173,130 June 59,000 $ 226,530 July 69,000 $ 253,230 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 39,000 machine-hour level of activity is: Utilities (variable) $ 58,500 Supervisory salaries (fixed) 55,000 Maintenance (mixed) 59,630 Total overhead cost $ 173,130 Nova Company’s...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours Total Overhead Cost April 47,000 $ 192,050 May 37,000 $ 168,550 June 57,000 $ 215,550 July 67,000 $ 239,050 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 37,000 machine-hour level of activity is: Utilities (variable) $ 48,100 Supervisory salaries (fixed) 66,000 Maintenance (mixed) 54,450 Total overhead cost $ 168,550 Nova Company’s...
Nova Company's total overhead cost at various levels of activity are presented below. Month April MAY June July Machine- Hours 51.000 41.000 61,000 71,000 Total Overhead Cost $ 181,310 $ 158,210 $ 204, 410 $227,510 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 41,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 49,200 51,000 58,010 $158,210 Nova Company's management...
Nova Company's total overhead cost at various levels of activity are presented below: Month April May June July Machine- Hours 46,000 36,000 56,000 66,000 Total Overhead Cost $ 186,020 $ 161,820 $ 210,220 $ 234, 420 Assume that the total overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 36,000 machine-hour level of activity is: Utilities (variable) Supervisory salaries (fixed) Maintenance (mixed) Total overhead cost $ 43, 200 60,000 58,620 $ 161,...