This topic contains a solution. Click here to go to the answer

Author Question: The controller of Menno Corp presents you with the following observations in a general ledger ... (Read 123 times)

appyboo

  • Hero Member
  • *****
  • Posts: 527
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by appyboo on Jan 5, 2020

Mollythedog

  • Sr. Member
  • ****
  • Posts: 340
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.
Answer Preview
Only 29% of students answer this correctly



DyllonKazuo

  • Hero Member
  • *****
  • Posts: 565
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

  • Hero Member
  • *****
  • Posts: 516
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

  • Hero Member
  • *****
  • Posts: 526
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

  • Sr. Member
  • ****
  • Posts: 323
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



 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

For a complete list of videos, visit our video library