Determine fixed and variable costs using the high-low method and prepare graph.E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs.Total Maintenance CostsTotal Machine HoursMonthJanuaryFebruaryMarchAprilMayJune$2,5003,0003,6004,5003,2004,900300350500690400700Instructionsa. Determine the fixed and variable cost components using the high-low method.b. Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 costincrements.

Variable Cost -Any expense that fluctuates depending on the volume of output or the quantity of…

Determine fixed and variable costs using the high-low E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance c Total Maintenance Costs Total Machine Hours $2,500 300 3,000 350 3,600 500 4,500 690 3,200 400 4,900 700 Month January February March April May June Instructions a. Determine the fixed and variable cost components using the high-low method. h Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 c

Determine fixed and variable costs using the high-low E2.26 (LO 3) The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance c Total Maintenance Costs Total Machine Hours $2,500 300 3,000 350 3,600 500 4,500 690 3,200 400 4,900 700 Month January February March April May June Instructions a. Determine the fixed and variable cost components using the high-low method. h Prepare a graph showing the behaviour of maintenance costs, and identify the fixed and variable cost components. Use 100-hour increments and $1,000 c

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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The controller of the Blade Company wants you to estimate a cost function from the following two observations in a general ledger account called Maintenance: (Click to view the information.) Required 1. Estimate the cost function for maintenance. 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. Requirement 1. Estimate the cost function for maintenance. (Round your answers to the nearest cent as needed.) Maintenance costs = Maintenance costs = +( +( X X Requirement 2. Can the constant in the cost function be used as an estimate of fixed maintenance cost per month? Explain. the relevant range, not at cost levels the relevant range. If there are no months with zero The cost function in requirement 1 is an estimate of how costs behave machine-hours represented in the maintenance account, data in that account function provides the best available starting point for a straight line that approximates how a cost behaves be used to…
Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
The following computer printout was generated, using regression, for use in estimating maintenance costs. Intercept 8300 X Variable 1 37 Multiple R 0.9500 R Square 0.9025 Activity variable machine hours An estimate of maintenance costs at an activity level of 100 machine hours would be:
The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost P1,350 7 P1,590 11 P1,920 15 P2,100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to:
Compute (a) cycle time, (b) value-added time, (c) non-value-added time, and (d) cycle efficiency using the following information for a manufacturer. Process time. 2.10 days Move time. 0.75 days Inspection time. 0.50 days Wait time. 0.15 days
SITUATION2: Interpret the figure below: find (a) Present worth of all additional maintenance cost, (b) Present worth of all cost, (c) Equivalent uniform annual cost (EUAC). Note, EUAC is the sum of all expenses such as first cost, operation cost and other expenses. 0 12 3 4 5 6 7 8 9 10 11 12 Y ✓ 1.5 1.5 1.5 1.5 1,5 1.5 1.5 1.5 1.5.1,5 1.5 1.5 Initial cost: P20M Annual maintenance: P1.5M www 25 1,5 Additional Maintenance every 5 years: P3M Cost of money: 8.0%
Write a linear cost function equation for each of the following conditions. Use y for estimated costsand X for activity of the cost driver. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usagecosts for each day the machinery is in operation.
(1) calculate the overhead assigned rate (note their order from above): Overhead Cost Items Estimated Overhead Cost Driver Activity Levels Activity Rate Purchasing $70,000 ? ? ? Handling materials $33,350 ? ? ? Machine setups $70,500 ? ? ? Inspections $25,500 ? ? ? Utilities $45,000 ? ? ? (2) calculate the total order cost (again, note their order from above): Activity Cost Drivers Activity Levels Activity Rate Assigned Costs ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Total Order Cost ?
ngageNOWv2 | Online teachin X + om/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... € Compute conversion costs given the following data: direct materials, $363,600; direct labor, $192,400; factory overhead, $204,500 and selling expenses, $35,600. Oa. $396,900 Ob. $568.100 Oc. $168,900 Od. $760,500 8 5/2
From your readings and videos, you learned about cost estimation using the high low method. A company has captured two sets of data to estimate maintenance cost. Using the information below, estimate total maintenance should activity level reach 8,700 machine hours. Machine Maintenance Hours Cost per Machine Hour 10,000 8,000 $0.20 $0.25 Hi Low Select one: O a, $3,450 O b. $2,450 O c. $1,000 O d. $2,000 O e. $500
*(A)The Mortise Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Mortise has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.Month Cost HoursJanuary $40,000 3,600 February 38,500 3,000 March 36,280 3,300 April 38,000 3,500 May 69,850 5,850 June 45,000 4,250Required:a. What is the slope coefficient?b. What is the constant for the estimated cost equation?c. What is the estimated cost function for the above data? d. What is the estimated total cost at an operating level of 3,100 hours? *(B) The XYY company has received an initial order for eight of its products (GGG). The information about products as follows: - Direct material cost per (GGG) $ 100,000 - Direct- assembly labor time for first GGG 4,000 labor-hours - Learning curve for assembly labor time per GGG 80% cumulative average time- Direct -assembly labor cost $ 50 per hour-…
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.