Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Transcribed Image Text:Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000
machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to
27,000 machine hours, which was still within the relevant range, the average total cost per machine hour
was $27.30.
On the basis of this information, the variable cost per machine hour was (Round your final answer to 2
declmal places):
On the basis of this information, the fixed cost was (Round your Intermedlate calculations to 2 declmal
places final answer to nearest dollar amount):
On the basis of this information, what were total maintenance costs when the company experienced
25,000 machine hours? (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest
dollar amount.)
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- Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to 27,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.30. On the basis of this information, the variable cost per machine hour was (Round your final answer to 2 decimal places): On the basis of this information, the fixed cost was (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount): On the basis of this information, what were total maintenance costs when the company experienced 25,000 machine hours? (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount.)arrow_forwardData table Month Total Cost Machine Hours January.. 3,420 1,090 February..... S 3,760 1,120 March .... $ 3,532 1,080 April ..... 3,720 1,220 May S 4,800 1,330 June 4,192 1,480 .. %24 %24arrow_forwardRR Company uses the high-low method to analyze cost behavior. The company observed that at 2,000 machine hours of activity, total maintenance costs averaged ₱40.00 per hour. When activity jumped to 6,000 machine hours, the average cost per machine hour totaled ₱35.00. If the number of machine hours would exceed 5,000, fixed cost would increase by ₱20,000. On the other hand, if it will be below 1,000 machine hours, fixed cost would decrease by ₱10,000. But, regardless of the number of machine hours, variable cost per unit remains constant. 1. If RR plans to incur 4,500 machine hours, the total cost would be _______. 2. If RR plans to incur 5,300 machine hours, the total cost would be _______.arrow_forward
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