Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Delivery Dudes Services has the collected the following information
about operating expenditures for its delivery trucks for the past five
years:
Year Miles Operating costs
2019 45,000 $185,000
2020 60,000 $200,000
2021 40,000 $170,000
2022 55,000 $195,000
2023 75,000 $215,150
Using the high-low method, what is the estimated fixed cost for 2024 at
an activity level of 50,000 miles?
a. $123,200. b. $152,200. c. $134,600. d. $118,400.
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Transcribed Image Text:Delivery Dudes Services has the collected the following information about operating expenditures for its delivery trucks for the past five years: Year Miles Operating costs 2019 45,000 $185,000 2020 60,000 $200,000 2021 40,000 $170,000 2022 55,000 $195,000 2023 75,000 $215,150 Using the high-low method, what is the estimated fixed cost for 2024 at an activity level of 50,000 miles? a. $123,200. b. $152,200. c. $134,600. d. $118,400.
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