1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Katarina [22]
2 years ago
13

Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine-hours best explain the

company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,200 machine-hours, with the following data being available for the first six months of the year:
Month Utilities Machine Hours
January $8,700 800
February $8,360 720
March $8,950 810
April $9,360 920
May $9,625 950
June $9,150 900

Using the high-low method, the utilities cost associated with 1,110 machine hours would be _____.
Business
1 answer:
Paha777 [63]2 years ago
5 0

Answer:

The utilities cost associated with 1,110 machine hours will be $10,505.

Explanation:

High Low method is a way to calculate the variable and fixed cost element of total cost using lowest level of activity and its cost and highest level of activity and its cost.

In this example The Highest activity of Machine hour is in the month of May and Lowest  activity is in February.

Using high low method:

Variable cost =  ( Highest activity cost - Lowest activity cost ) / ( Highest activity - Lowest activity )

Variable cost =  ( Cost in May - Cost in February ) / ( Machine hours in May - Machine Hours in February)

Variable cost =  ( $9,625 - $8,360 ) / ( 950 - 720 )

Variable cost =  $1,265 / 230

Variable cost =  $5.50 per machine hour

Fixed Cost = $8360 - ( 720 x $5.5) = $8360 - $3960 = $4,400

Utility cost of 1110 units = $4,400 + ( 1,110 x 5.5 ) = $4400 + $6,105 = $10,505

You might be interested in
Verizon is running two TV ads to attract new customers. Ad A is run once a week, and it costs $20 per showing. Ad B is run once
maria [59]

Answer:

TRUE The Statement is correct

Explanation:

We need to add up both advertizement contract to knwo the total acquisition cost of the advertizement.

<u>First contract cost:</u>

365 daysper year / 7 dayts per week = 52 week per year

52 week per year x $20 dolllar per weke = $1,040

<u>Second contract cost:</u>

12 months per year x $100 per month =       $1,200

Total acquisition cost: 2,240

4 0
3 years ago
Craigmont company's direct materials costs are $4,900,000, its direct labor costs total $8,710,000, and its factory overhead cos
goldenfox [79]

Craigmont company's direct materials costs are $4,900,000, its direct labor costs total $8,710,000, and its factory overhead costs total $6,710,000. its prime costs total:_Prime Cost = direct material cost + Direct Labor cost

= $ 4900000 + $ 8710000

= $ 13610000

A high price is the entire direct price of production, such as uncooked materials and exertions. indirect charges, along with utilities, supervisor salaries, and delivery costs, are not blanketed in top charges. corporations want to calculate the prime value of each product manufactured to ensure they are generating earnings.

Industry averages propose top charges need to be between fifty five% and 60%. Years in the past, that range might have been as high as sixty five%. however as the costs of a lease, coverage, and items have risen, it is grown to be extra vital to hold that percent quite tight within that variety.

Learn more about prime cost here:

brainly.com/question/26058632

#SPJ4

7 0
1 year ago
To help understand why attendance at the team's games was so poor, the atlanta falcons used marketing research to gather factual
Nataly [62]
The gathering of factual statements is an example of marketing research in its descriptive role.

<span>The descriptive role of marketing research is focused on the gathering of facts to explain the current situation of a market and/or marketing program.</span>
3 0
3 years ago
What is an example of a consumer good that you could also use as an industrial good to start a business?
Karolina [17]

Answer:

lets say the Sugar

Explanation:

Sugar is a consumable good as u can use to make tea, it also can be used in the production of many industrial goods eg beverage, brewery, etc

6 0
2 years ago
Lawler Manufacturing Company expects annual manufacturing overhead to be $810,000. The company also expects 45,000 direct labor
8_murik_8 [283]

Answer:

A. Overhead allocation rates based on direct labour hours = $18 per direct labour hour

B. Overhead allocation based on direct labour cost = 0.6

C. Overhead allocation rates based on machine time = $40 per machine time hour

Explanation:

Here, we are interested in having some calculations done; We proceed as follows;

From the question, the total overhead = 810,000

Mathematically;

a. The overhead allocation rates based on direct labour hours = Amount of total overhead/Total direct labour hours

= 810,000/45,000 = $18 per direct labour hour

b. The overhead allocation based on direct labour cost = Amount of total overhead / Total direct labour costs

= 810,000/1,350,000 = 0.6

C. Overhead allocation based on Machine time = Amount of total overhead/total machine time hours = 810,000/20,250 = $40 per machine time hour

7 0
3 years ago
Other questions:
  • Acme company has just completed the incorporation process and received its articles of incorporation from the state. at the firs
    14·1 answer
  • How do you calculate net gdp
    11·1 answer
  • The mayor gave the winner a blue ribbon which kind of complement is the word in bold
    7·2 answers
  • Dove, Inc., had additions to retained earnings for the year just ended of $643,000. The firm paid out $40,000 in cash dividends,
    5·1 answer
  • Bingo Land Inc. has a defined benefit pension for their employees. For the fiscal year 2019, the PBO beginning balance was $1,80
    7·1 answer
  • If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.
    8·1 answer
  • Wetherald Products, Incorporated, has a Pump Division that manufactures and sells a number of products, including a standard pum
    14·1 answer
  • 500 divided by 2/3 = 500 * blank = blank feet <br><br><br>please help me
    13·1 answer
  • Current-year North Carolina real property taxes will be prorated at the June 26 settlement. How would the $5,645 tax bill prorat
    8·1 answer
  • Like personal selling, direct marketing makes use of blank______ communication, allowing the seller to adapt messages according
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!