Question
Starwood Company’s high and low level of activity last year was 80,000 units of product produced...
Starwood Company’s high and low level of activity last year was 80,000 units of product produced in June and 45,000 units produced in December. Machine maintenance costs were $375,500 in June and $261,750 in December. Using the high-low method, determine an estimate of fixed cost for a month.
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Gribble Company’s high and low level of activity last year was 60,000 units of product produced...
Gribble Company’s high and low level
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1. Company’s high and low level of activity last year was 70000 units of product produced in...
1. Company’s high and low level of activity last year
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2.In applying the high-low method, what is the fixed
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Month
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Total Cost
January
88000
$192000
February
54000
120000
March
80000
168000...
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Bramble Corp.’s high and low level of activity last year was
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Waterway Industries’s high and low level of activity last year
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Problem 5A-8 High-Low Method; Predicting Cost [LO5-10] Nova Company’s total overhead cost at various levels of...
Problem 5A-8 High-Low Method; Predicting Cost [LO5-10]
Nova Company’s total overhead cost at various levels of activity
are presented below:
Month
Machine-
Hours
Total
Overhead
Cost
April
51,000
$
181,360
May
41,000
$
157,760
June
61,000
$
204,960
July
71,000
$
228,560
Assume that the total overhead cost above consists of utilities,
supervisory salaries, and maintenance. The breakdown of these costs
at the 41,000 machine-hour level of activity is:
Utilities (variable)
$
53,300
Supervisory salaries
(fixed)
48,000
Maintenance (mixed)
56,460...
At the high level of activity in November, 9000 machine hours were run and power costs...
At the high level of activity in November, 9000 machine hours
were run and power costs were $16000. In April, a month of low
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The following information is available for a company’s maintenance cost over the last seven months. Month...
The following information is available for a company’s
maintenance cost over the last seven months.
Month
Maintenance Hours
Maintenance Cost
June
9
$
5,450
July
18
6,900
August
12
5,100
September
15
6,000
October
21
6,900
November
24
8,100
December
6
3,600
Using the high-low method, estimate both the fixed and variable
components of its maintenance cost.
High-Low method - Calculation of variable cost per maintenance
hour
Total cost at the high
point
Variable costs at the high
point:
Volume...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours...
Nova Company’s total overhead cost at various levels of activity
are presented below:
Month
Machine-
Hours
Total
Overhead
Cost
April
52,000
$
198,260
May
42,000
$
172,460
June
62,000
$
224,060
July
72,000
$
249,860
Assume that the total overhead cost above consists of utilities,
supervisory salaries, and maintenance. The breakdown of these costs
at the 42,000 machine-hour level of activity is:
Utilities (variable)
$
58,800
Supervisory salaries (fixed)
49,000
Maintenance (mixed)
64,660
Total overhead cost
$
172,460
Nova Company’s...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours...
Nova Company’s total overhead cost at various levels of activity
are presented below:
Month
Machine-
Hours
Total
Overhead
Cost
April
48,000
$
217,820
May
38,000
$
190,420
June
58,000
$
245,220
July
68,000
$
272,620
Assume that the total overhead cost above consists of utilities,
supervisory salaries, and maintenance. The breakdown of these costs
at the 38,000 machine-hour level of activity is:
Utilities (variable)
$
57,000
Supervisory salaries
(fixed)
70,000
Maintenance (mixed)
63,420
Total overhead cost
$
190,420
Nova Company’s...
Nova Company’s total overhead cost at various levels of activity are presented below: Month Machine- Hours...
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are presented below:
Month
Machine-
Hours
Total
Overhead
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April
48,000
$
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May
38,000
$
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June
58,000
$
227,240
July
68,000
$
254,540
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Utilities (variable)
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Supervisory salaries
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54,000
Maintenance (mixed)
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Total overhead cost
$
172,640
Nova Company’s...
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