Joha, an accountant for Jones, Inc., has decided to estimate the fixed and variable components associated with the company's repair activity. The following data for the past few months has been collected: Repair Hours Total Repair Costs 20 $ 1,000 25 1,250 30 1,400 40 1,550 Required: Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 10 hours are used.
Joha, an accountant for Jones, Inc., has decided to estimate the fixed and variable components associated with the company's repair activity. The following data for the past few months has been collected: Repair Hours Total Repair Costs 20 $ 1,000 25 1,250 30 1,400 40 1,550 Required: Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 10 hours are used.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter28: Statistics And Linear Regression (stats)
Section: Chapter Questions
Problem 1R
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Joha, an accountant for Jones, Inc., has decided to estimate the fixed and variable components associated with the company's repair activity. The following data for the past few months has been collected:
Repair Hours |
Total Repair Costs |
20 |
$ 1,000 |
25 |
1,250 |
30 |
1,400 |
40 |
1,550 |
Required:
Estimate the fixed and variable components for the repair costs using the high-low method. Using the cost formula, predict the total cost of repair if 10 hours are used.
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