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Alja [10]
3 years ago
11

Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the foll

owing for the past nine months:Month Number of Cavities Filled Total CostJanuary 375 $5,300February 500 5,850March 350 5,200April 600 6,250May 325 5,150June 475 5,700July 525 6,100August 575 6,300September 450 5,550Required:1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.2. Using these estimates, calculate Mountain’s total cost for filling 400 cavities.
Business
1 answer:
Ivenika [448]3 years ago
8 0

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.

Mountain has recorded the following for the past nine months:

January:

Number of Cavities= 375

Total cost= $5,300

February:

Number of Cavities  500

TC= 5,850

March

Number of Cavities 350

TC= 5,200

April

Number of Cavities 600

TC=6,250

May

Number of Cavities 325

TC= 5,150

June

Number of Cavities 475

TC= 5,700

July

Number of Cavities 525

TC= 6,100

August

Number of Cavities  575

TC= 6,300

September

Number of Cavities  450

TC= 5,550

A) Variable cost= (Highest activity cost - lowest activity cost) / (Highest activity units - lowest activity units)

Variable cost= (6300 - 5150) / (600 - 325)= 4.18 per unit

Fixed cost= HACost - (variable cost per unit * HAUnits)= 6300 - (4.18*600)= 3792

Fixed cost= LACost - (variable cost per unit* LAUnits)= 5150 - (4.18*325)= 3792

B)  Q= 400

Total cost= 3792 + 4.18*400= $5464

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kobusy [5.1K]

Answer:

Total cost for Operations Department = 92,548

Explanation:

Dual-rate method is a method of allocating costs in which two cost functions are used. Typically, the two functions are a fixed-cost function and a variable-cost function.

First calculate allocation rate for fixed cost for Operations Department

Fixed cost  = 60000

Budgeted copies = 310000

Fixed allocation rate = 60000 ÷ 310000

                                  = $ 0.1935483870967742‬ per copy............eq(2)

Variable cost = $ 0.05 per copy............ eq(1)

Actual usage by Operations department was 380000 copies.

Multiply this amount with allocation rates calculated in eq(1) and e1(2).

Actual fixed cost = 0.1935483870967742 × 380000

                            = 73548

Actual variable cost = 0.05 × 380000

                                  = 19000

Total cost for Operations Department = 73548 + 19000

                                                                = 92,548

6 0
3 years ago
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Mrrafil [7]

Answer:

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8 0
2 years ago
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patriot [66]

Answer:

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Explanation:

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you have your first meeting with the main client contact next week. It is very important that the meeting is productive and goes
Evgesh-ka [11]

Answer: There are many points that should be clear in the head before one has meeting with the client. Some of them are discussed here.

Explanation:

1: Objective must be very clear: The main aim or objective of the meeting should be very clear to the speaker and it should be made clear to the listener( client)

2:The meeting should not take much time: The time take by the speaker to make the client understand the facts should be less and precise. It should take much time.

3: The facts and data should be crisp and clear: The data and analysis part should be made clear before presenting it to client  to avoid any confusion during the meeting.

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8 0
3 years ago
The goal of line balancing is to assign tasks to workstations in such a way that the workstations have approximately equal time
Tanya [424]

Answer:

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