high low method machine hours
2 Loading and unloading time is 10 of machine time. Full access to over 1 million Textbook Solutions.
978-0-07-802542-6 PROBLEM 2-21 PAGE 60 PROBLEM 2â 21 High-Low Method.
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. Machine-hours Labor Costs Highest observation of cost driver 400. 247 help from Expert Tutors on 140 subjects. The total maintenance cost at 25000 machine hours is given as.
Total costsfixed costsvariable cost. Atlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost. Given a set of data pairs of activity levels ie.
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Machine Hours 22000 32000 26000 24000 Cost 56000 May June July August Oa. Predicting Cost Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according. 90000 110000 130000 150000 100000 120000 140000 160000 180000 200000 220000 240000 260000 280000 300000 Machine-Hours Maintenance Costs Solution.
Assume that the relevant. The information for 20x3 is provided below. Using the high-low method of.
Hotlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost. 1 Total working hours per annum are 200 x 12 2400. Quarter Work hours Cost 1.
High-Low method is one of the several mathematical techniques used in managerial accounting to split a mixed cost into its fixed and variable components. The Hunter Company uses the high-low method to estimate the cost function. Based on the following information calculate fixed costs per month using the high-low method.
Electricity costs Fixed electricity. Up to 256 cash back Get the detailed answer. Using the high-low method develop a cost function for monthly electricity costs.
The companys relevant range of activity varies from a low of 600 machine hours to a high of 1200 machine hours with the following data being available. Reynolds Company which uses the high-low method to analyze cost behavior has determined that machine hours best predict the companys total utilities cost. Hotlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost.
The companys relevant range of. Predicting Cost LO 2â 3. Month Maintenance Cost Machine Hours.
Barkoff Enterprises which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost. High Low Method is a mathematical technique used to determine the fixed and variable elements of historical costs that are partially fixed and partially variable. Assume that the cost of electricity at a small manufacturing facility is a mixed cost since the company has only one electricity meter for air quality cooling.
3 Effective working hours are 2160 hours 2400 10 of 2400. Get more out of your subscription Access to over 100 million course-specific study resources. Machine Hours Electrical Cost January 4000 3120 February 6000 4460 March 4800 3500 April 5800 5040 May 3600 2900 June 4200 3200 Required.
Labor hours machine hours etc and the corresponding total. Example of High-Low Method. Problem 5-23 High-Low Method.
In your computations do not round your calculations. The companys relevant range of.
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