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Katarina [22]
3 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]3 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

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The flow of money received on a sometimes a weekly, monthly, or yearly basis is known as __________.
morpeh [17]
The flow of money received on a sometimes a weekly, monthly, or yearly basis is known as SALARY.

Salary is the compensation employees received from their employers. It can be weekly, monthly, or yearly basis depending on the contract agreement between the two parties.
4 0
3 years ago
Pick an Agile Manifesto principle that you think is likely to have the biggest impact on the success or failure of a typical pro
satela [25.4K]

The correct answer to this open question is the following.

The Agile Manifesto principle that I am going to pick in the principle of "Embracing Change."

I think this is likely to have the biggest impact on the success or failure of a typical project in my organization because change is the constant in modern-day business. Probably, since the inception of the modern-day industry.

In order to be successful and maintain that success over the years -no matter the conditions- a company has to be ready not only to adapt to change but to change ahead of necessity. And this is one of the most difficult things to do in business because people love to be in a comfort zone for years. People in corporate America likes to know they are safe in their traditional places doing traditional things. For them, change is tough.

That is why I think "Embrace change" would be the principle that would help me the most.

3 0
2 years ago
If a buyer's willingness to pay for a new Honda is $30,000 and she is able to actually buy it for $28,000, her consumer surplus
dalvyx [7]

Answer:

$2,000

Explanation:

Calculation to determine the consumer surplus

Consumer surplus=$30,000-$28,000

Consumer surplus=$2,000

Therefore consumer surplus is $2,000

8 0
3 years ago
Before the year began, Mitchell Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,0
masya89 [10]

Answer:

B, 195750

Explanation:

Let's first figure out the manufacturing overhead per direct labor hour

175500/13000= 13.5

So we allocate 13.5 in manufacturing overhead per direct labor hour

Let's the mulitply this by the number of actual direct labor hours

14500*13.5=195750

6 0
3 years ago
BlendedBlended Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the​ year, Al
ehidna [41]

Answer:

The answer is: $2,300

Explanation:

To determine the ending balance of the account Allowance for Bad Debts of Blended Corporation, we can use the following formula:

ending balance = beginning balance - amount wrote off + recorded bad debts

ending balance = $1,300 - $1,800 + $2,800 =$2,300

4 0
2 years ago
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