FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Topic Video
Question
High-Low Method
The
Total Costs | Production | |||
January | $297,360 | 1,540 | units | |
February | 379,960 | 2,880 | ||
March | 462,560 | 4,340 |
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.
a. Variable cost per unit | $fill in the blank 1 |
b. Total fixed cost | $fill in the blank 2 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Data below relate to the Tori Company for May and August of the current year: May 35,000 Maintenance hours Maintenance cost $ 1,247,000 August 40,000 $ 1,337,000 May and August were the lowest and highest activity levels, and Tori uses the high-low method to analyze cost behavior. Which of the following statements is true? Multiple Choice The variable maintenance cost is $18 per hour The variable maintenance cost is $20 per hour The variable maintenance cost is $22 per hourarrow_forwardThe manufacturing costs of Bartee-Allen Enterprises for the second three months of the yearfollow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.arrow_forwardneed answer of this Question Please Provide itarrow_forward
- 5arrow_forwardNonearrow_forward8 ok Royal Enterprises has collected the following cost data for various levels of activity: Month June July August Required: a. Using the high-low method, calculate the variable cost per unit and the total fixed cost per month. Note: Round variable cost to 2 decimal places. b. What would the total cost be for a month with 5,350 units duced? Note: Do not round your intermediate calculations. a. Fixed Cost a. Variable Cost b. Total Costs Units Total Cost per Unit 3,450 5,850 7,050 $ 12.10 8.10 7.30 per month per unitarrow_forward
- Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Do not round your intermediate calculations. Cost Machine Hours January $52,200 February 75,000 March 57,000 April 64,000 a. $2,530 Ob. $1,533 c. $22,800 Od. $50,600 20,000 29,000 22,000 24,500arrow_forward(J)arrow_forwardRovinsky Corp, a company that produces and sells a single product, has provided its contribution format income statement for November. Sales (5,700 units) $319,200 Variable Expenses 188,100 Contribution Margin 131,100 Fixed Expenses 106,500 Net Operating Income 24,600 Calculate the breakeven point in: a. sales units (round to the nearest whole unit) b. and sales dollarsarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education