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.
Homework Answers
Answer #1
The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.
Not the answer you're looking for?
Similar Questions
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
of activity last year was 60,000 units of product produced in May
and 20,000 units produced in November. Machine maintenance costs
were $104,000 in May and $40,000 in November. Using the high-low
method, determine an estimate of total maintenance cost for a month
in which production is expected to be 45,000 units.
a. $90,000
b. $96,000
c. $78,000
d. $80,000
how did we solve it and get D?
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
was 70000 units of product produced in May and 24000 units produced
in November. Machine maintenance costs were $167000 in May and
$65800 in November. Using the high-low method, determine an
estimate of total maintenance cost for a month in which production
is expected to be 54000 units.
2.In applying the high-low method, what is the fixed
cost?
Month
Miles
Total Cost
January
88000
$192000
February
54000
120000
March
80000
168000...
Bramble Corp.’s high and low level of activity last year was 70000 units of product produced...
Bramble Corp.’s high and low level of activity last year was
70000 units of product produced in May and 21000 units produced in
November. Machine maintenance costs were $222000 in May and $75000
in November. Using the high-low method, determine an estimate of
total maintenance cost for a month in which production is expected
to be 41000 units.
Waterway Industries’s high and low level of activity last year was 63000 units of product produced...
Waterway Industries’s high and low level of activity last year
was 63000 units of product produced in May and 28000 units produced
in November. Machine maintenance costs were $217600 in May and
$105600 in November. Using the high-low method, determine an
estimate of total maintenance cost for a month in which production
is expected to be 51000 units.
a. $194400
b. $179200
c. $175200
d. $201600
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
activity, 3000 machine hours were run and power costs amounted to
$7000. Using the high-low method, the estimated fixed cost element
of power costs is
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...
Nova Company’s total overhead cost at various levels of activity
are presented below:
Month
Machine-
Hours
Total
Overhead
Cost
April
48,000
$
199,940
May
38,000
$
172,640
June
58,000
$
227,240
July
68,000
$
254,540
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)
54,000
Maintenance (mixed)
61,640
Total overhead cost
$
172,640
Nova Company’s...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 6 minutes ago
asked 9 minutes ago
asked 15 minutes ago
asked 27 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago
asked 2 hours ago
asked 2 hours ago
asked 3 hours ago
asked 3 hours ago
asked 3 hours ago