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DedPeter [7]
3 years ago
6

Druganaut company buys a $21,000 van on credit. the transaction will affect the

Business
1 answer:
Debora [2.8K]3 years ago
5 0

Balance sheet.

The balance sheet shows assets, liabilities, and stockholder's equity. Buying the van on credit would be a liability.

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Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation bet
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Using the High and Low method the Variable and Fixed portions of the Total Cost is:

Fixed Costs = $247,420

Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790

B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)

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The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)

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The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs

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