Business, 26.10.2020 17:20, chrisd2432

Using the highlow method, what would the total maintenance costs be if machine hours were used? (Round any intermediary calculations to the nearest cent.)

Answers: 1

Show answers

Answers

answered: kasper04

Hi, the question you posted was incomplete, however, i have searched the full question and it reads as follows :

Maintenance costs at Seaside Manufacturing over the past six months are listed in the following table.

Month

Maintenance cost

Machine

hours

January

?$13,600

?15,500

February

?$14,720

?16,900

March

$13,000

14,000

April

?$14,480

?16,600

May

$16,000

18,000

June

?$13,200

?15,000

Using the high low method, what would the total maintenance costs be if 17,800 machine hours were? used? (Round any intermediary calculations to the nearest? cent.)

A. $15,850

B. $31,350

C. $13,350

D. $ 2650

A. $15,850

Explanation:

The High Low Method, is used to separate variable and fixed cost element in a semi-variable cost. The Maintenance cost is a semi-variable cost with both a variable and a fixed cost element.

So, first identify the 2 points. That is the high and the low

May is the High

March is the Low

Next, determine the variable cost per unit :

Variable Cost = Difference in Overhead Cost between the High and the Low ÷ Difference in the Independent Variable between the High and the Low

Therefore,

Variable Cost = ($16,000 - $13,000) ÷ (18,000 - 14,000)

= $0.75 per machine hour

Next, find the fixed cost element

Fixed Cost = Total Overheads - Variable Cost at Chosen Point

I will choose the High point !

Therefore,

Fixed Cost = $16,000 - ($0.75 × 18,000)

= $2,500

Now, we have our equation as

Total Costs = $2,500 + $0.75 × machine hours

So to find the total costs if 17,800 machine hours were used, we simply need to apply the equation as follows :

Total Costs = $2,500 + $0.75 × machine hours

Therefore,

Total Costs = $2,500 + $0.75 × 17,800

= $15,850

answered: Guest

dunce cap 4life lollolol

answered: Guest

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds

Other questions on the subject: Business

Business, 21.06.2019 15:10, marialuis2732

Gideon company uses the allowance method of accounting for uncollectible accounts. on may 3, the gideon company wrote off the $2,200 uncollectible account of its customer, a. hopkins. on july 10, gideon received a check for the full amount of $2,200 from hopkins. the entry or entries gideon makes to record the write off of the account on may 3 is:

Answers: 3

continue

Business, 22.06.2019 19:10, soevse

Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration

Answers: 1

continue

Business, 22.06.2019 19:30, dfrtgyuhijfghj4794

About 20 years ago, sturdy light, inc., produced a sturdy, lightweight backpack in a market that was rapidly growing. sturdy light became a leader in this market. eventually, the backpack market reached the maturity stage and slowed down. however, by this time, sturdy light had developed a strong brand name and continued to steadily lead the market. which of the following describes this scenario? a. sturdy light was a star that developed into a cash cow. b. sturdy light was a question mark that developed into a star. c. sturdy light was a dog that developed into a question mark. d. sturdy light was a cash cow that developed into a star.

Answers: 2

continue

Business, 22.06.2019 22:30, GreenHerbz206

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. in this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.

Answers: 1

continue

Do you know the correct answer?

Using the highlow method, what would the total maintenance costs be if machine hours were used? (Rou...