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Author Question: The controller of Menno Corp presents you with the following observations in a general ledger ... (Read 186 times)

appyboo

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The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:

MonthMachine-hoursMaintenance Costs Incurred
January6,000$4,000
February8,0004,750
March8,5004,900
April9,0005,000
May7,0004,400
June10,0005,400


Using the high- low method, what is the variable maintenance cost per machine hour at Menno Corp?
◦ $0.35
◦ $1.50
◦ $0.67
◦ $0.54


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Marked as best answer by appyboo on Jan 5, 2020

Mollythedog

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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DyllonKazuo

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The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:

MonthMachine-hoursMaintenance Costs Incurred
January6,000$4,000
February8,0004,750
March8,5004,900
April9,0005,000
May7,0004,400
June10,0005,400


Using the high-low method, what is the monthly fixed maintenance cost at Menno Corp?
◦ $18,460
◦ $7,785
◦ $1,900
◦ $1,260




NguyenJ

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The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:

MonthMachine-hoursMaintenance Costs Incurred
January6,000$4,000
February8,0004,750
March8,5004,900
April9,0005,000
May7,0004,400
June10,0005,400


Using the high-low method, what will the total monthly manufacturing costs be if Menno Corp produces 7,500 units?
◦ $2,625
◦ $5,555
◦ $4,050
◦ $4,525




LaDunn

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The controller of Menno Corp presents you with the following observations in a general ledger account called Maintenance:

MonthMachine-hoursMaintenance Costs Incurred
January6,000$4,000
February8,0004,750
March8,5004,900
April9,0005,000
May7,0004,400
June10,0005,400

Using the high-low method estimate the cost function for Menno Corp.'s monthly maintenance costs



rachel

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y = $1900 + $0.35X
                       
Step 1
High cost $5,400
Low cost $(4,000)
Change in cost $1,400
High activity       10,000
Low activity       (6,000)
Change in activity        4,000
Change in cost $1,400
Divide byDivide by
Change in activity        4,000
Variable cost per unit $0.35

Step 2
High cost $5,400
Low cost $(4,000)
Change in cost $1,400
High activity       10,000
Low activity       (6,000)
Change in activity        4,000
Change in cost $1,400
Divide byDivide by
Change in activity        4,000
Variable cost per unit $0.35
Now, using high point data:
Total variable cost at high point:
High activity 10,000
Variable cost per unit $0.35
Total variable cost at high point $3,500
Total cost at high point $5,400
Less total variable cost at high point $(3,500)
Fixed cost $1,900



 

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