Maintenance expenses of a company are to be analyzed for purposes of constructing a flexible budget. Examination of past records disclosed the following costs and volume measures: Highest Lowest Cost per month $ 42,000 $ 34,000 Machine hours 46,000 30,000 Using the high-low method, the estimated variable cost per machine hour is:

Variable cost per machine hour= $0.5

Explanation:

Giving the following information:

Highest Lowest

Cost per month $ 42,000 $ 34,000

Machine hours 46,000 30,000

To calculate the unitary variable cost per machine hour, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (42,000 - 34,000) / (46,000 - 30,000)

Variable cost per unit= $0.5

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

750 h and costs $0.60 per bulb.