Bilibid Company operates several regional offices. Its manager, Leila, is very much concermed about the cost of supplies that is whyshe hired her lover, Mr. Dayan, to analyze the behavior of its cost. A record of service revenues and corresponding supply costs in oneof the offices follows:Cost of suppliesP66,500Monthly service revenuesP850,000650,000750,0001,450,00055,50060,50096,50078,5001.100,000Required:a. Determine the variable cost per one-peso of sales and the fixed costs using the high-low method.b. Compute the expected cost of supplies during a month when sales would be P1,050,000.

Variable cost per one peso of sales = (Highest activity cost - Lowest activity cost) / (Highest…

Bilibid Company operates several regional offices. Its manager, Leila, is very much concerned about the cost of supplies that is why she hired her lover, Mr. Dayan, to analyze the behavior of its cost. A record of service revenues and corresponding supply costs in one of the offices follows: Monthly service revenues P850,000 650,000 750,000 1,450,000 1.100,000 Cost of supplies P66,500 55,500 60,500 96,500 78.500 Required: a. Determine the variable cost per one-peso of sales and the fixed costs using the high-low method. b. Compute the expected cost of supplies during a month when sales would be P1,050,000.

Bilibid Company operates several regional offices. Its manager, Leila, is very much concerned about the cost of supplies that is why she hired her lover, Mr. Dayan, to analyze the behavior of its cost. A record of service revenues and corresponding supply costs in one of the offices follows: Monthly service revenues P850,000 650,000 750,000 1,450,000 1.100,000 Cost of supplies P66,500 55,500 60,500 96,500 78.500 Required: a. Determine the variable cost per one-peso of sales and the fixed costs using the high-low method. b. Compute the expected cost of supplies during a month when sales would be P1,050,000.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter12: Activity-based Management

Section: Chapter Questions

Problem 8E: Thayne Company has 30 clerks that work in its Accounts Payable Department. A study revealed the...

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