Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Supply costs at Coulthard Corporation's chain of gyms are listed
below:
Client-Visits Supply Cost
March
11,649
$26,575
April
11,445
$26,438
May
11,977
$26,795
June
12,200
$26,944
July
11,709
$26,615
August
11,195
$26,271
September 11,989
$26,803
October 11,680
$26,596
November 11,828
$26,695
Management believes that supply cost is a mixed cost that
depends on client visits. Use the high-low method to estimate the
variable and fixed components of this cost. Compute the variable
component first rounding off to the nearest whole cent. Then
compute the fixed component rounding off to the nearest whole
dollar. Those estimates are:
a. $2.36 per client visit; $26,616 per month.
b. $1.25 per client visit; $11,712 per month.
c. $0.71 per client visit; $18,265 per month.
d. $0.67 per client visit; $18,770 per month.
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Transcribed Image Text:Supply costs at Coulthard Corporation's chain of gyms are listed below: Client-Visits Supply Cost March 11,649 $26,575 April 11,445 $26,438 May 11,977 $26,795 June 12,200 $26,944 July 11,709 $26,615 August 11,195 $26,271 September 11,989 $26,803 October 11,680 $26,596 November 11,828 $26,695 Management believes that supply cost is a mixed cost that depends on client visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first rounding off to the nearest whole cent. Then compute the fixed component rounding off to the nearest whole dollar. Those estimates are: a. $2.36 per client visit; $26,616 per month. b. $1.25 per client visit; $11,712 per month. c. $0.71 per client visit; $18,265 per month. d. $0.67 per client visit; $18,770 per month.
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