The controller of Ivanhoe Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,041 3,456 4,147 5,184 3,686 5,633 Total Machine Hours 4,032 Variable cost per machine hour $ 4,608 6,912 9,101 5,760 9,216 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)

The controller of Ivanhoe Industries has collected the following monthly cost data for use in analyzing the behavior of maintenance costs. Month January February March April May June (a1) Total Maintenance Costs $3,041 3,456 4,147 5,184 3,686 5,633 Total Machine Hours 4,032 Variable cost per machine hour $ 4,608 6,912 9,101 5,760 9,216 Determine the unit variable costs using the high-low method for this mixed cost. (Round answer to 2 decimal places e.g. 2.25.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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roduction reports for the third quarter show the following data: Month Machine hours Direct labour hours Direct materials cost (£) Floor surface (square meters) Actual Overhead (£) July 10,000 44,000 25,000 150 31,200 August 15,000 37,800 21,750 170 47,000 September 13,400 59,500 32,000 210 40,100 Which variable would be the most likely basis for allocating overhead? a. Machine hours b. Labour hours c. Floor surface d. Direct materials cost
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