Problem Please solve all parts i need all answers The controller of Sunland Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total Machine Hours January $2,490 250 February 3,000 320 March 3,530 460 April 4,740 695 May 3,160 450 June 4,900 790 July 4,130 625 August 3,890 590 September 5,170 680 October 4,220 610 November 3,290 320 December 6,410 810 Determine the fixed- and variable-cost components using the high-low method. Fixed-costs $ Variable-costs $ LINK TO TEXT LINK TO TEXT What electricity cost does the cost equation estimate for a level of activity of 460 machine hours? Electricity costs $ By what amount does this differ from March’s observed cost for 460 machine hours? Amount differ $ LINK TO TEXT LINK TO TEXT What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs $ By what amount does this differ from June’s observed cost for 790 machine hours? Amount differ $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

See similar textbooks

Related questions

Concept explainers

Question

100%

Problem

Please solve all parts i need all answers

The controller of Sunland Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.

	Total Electricity Costs		Total Machine Hours
January		$2,490		250
February		3,000		320
March		3,530		460
April		4,740		695
May		3,160		450
June		4,900		790
July		4,130		625
August		3,890		590
September		5,170		680
October		4,220		610
November		3,290		320
December		6,410		810

Determine the fixed- and variable-cost components using the high-low method.

Fixed-costs		$
Variable-costs		$

LINK TO TEXT

What electricity cost does the cost equation estimate for a level of activity of 460 machine hours?

Electricity costs

By what amount does this differ from March’s observed cost for 460 machine hours?

Amount differ

LINK TO TEXT

What electricity cost does the cost equation estimate for a level of activity of 790 machine hours?

Electricity costs

By what amount does this differ from June’s observed cost for 790 machine hours?

Amount differ

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

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