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slega [8]
3 years ago
12

The following information is available for a company's utility cost for operating its machines over the last four months. Month

Machine hours Utility cost January 900 $ 5,450 February 1,800 $ 6,900 March 2,400 $ 8,100 April 600 $ 3,600 Using the high-low method, the estimated variable cost per machine hour for utilities is:
Business
1 answer:
jeka943 years ago
3 0

Answer:

The Estimated variable cost per machine hour for utilities is $2.50

Explanation:

High low method segregates the variable cost and fixed from the total cost using highest activity data and lowest activity data.

According to given data

Month   Machine hours   Utility cost

January         900               $5,450

February       1,800             $6,900

March            2,400            $8,100

April               600               $3,600

Using formula of High Low method

Variable cost = ( Cost of Highest activity - Cost of lowest activity ) / ( Highest activity - Lowest activity )

Variable cost = ( $8,100 - $3,600 ) / ( 2,400 - 600 )

Variable cost = $4,500 / 1800

Variable cost = $2.5

Fixed Cost = $8,100 - ( 2,400 x 2.5 ) = $8,100 - $6,000 = $2,100

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3 years ago
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worty [1.4K]

Answer:

decreased by 20%

Explanation:

Supposed we have input price of $30,000 and it produced an output of 300 units on the first year of operation. The cost per unit on the first year is $100 each ($30,000/300).

On the second year we still have the same input expense of $30,000 but the productivity output increased by 25%. So we have 375 units produced on the second year’s operation. The new cost per unit would be $30,000/375=$80 per unit.

Therefore we conclude that based on the example given, the new unit cost per product decreases by 20%.

$100-80 = $20

$20/$100 = 20%

4 0
3 years ago
Which of these statements about game design is FALSE?
nexus9112 [7]

When it comes to game design, it is false to say that<u> </u><u>Games design </u><u>is not a </u><u>STEM  career</u><u> because it is just abou</u><u>t  making entertainment.</u>

Game design:

  • Incorporates the feedback of users to make better games.
  • Is quite iterative.
  • Requires that many different people from different careers work in different teams.

Game design is a STEM career because it requires people with expertise in science, technology, and engineering. It would be false to say that these careers are not present in game design.

In conclusion, option B is correct.

Find out more on STEM careers at brainly.com/question/20250489.

6 0
2 years ago
In economics what does the term market referred to
Taya2010 [7]

I think it is the exchange of goods or services, which can be with or without money.

4 0
2 years ago
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On December 29, 2005, BJ Co. sold an equity security investment that had been purchased on January 4, 2004. BJ owned no other ma
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Answer:

AFS 2004 market price decline exceeded 2005 market price recovery

No No

The security cannot be classified as available-for-sale because the unrealized gains and losses are recognized in the Income Statement. Unrealized gains and losses on available-for-sale securities are recognized in owners' equity, not earnings.

The second part of the question is somewhat ambiguous. The 2004 price decline could exceed or be exceeded by the 2005 price recovery. The loss in the first year is not related in amount and does not constrain the realized gain in the second year.

The way to answer the question is to read the right column heading as implying that the earlier price decline must exceed the later price recovery. With that interpretation, the correct answer is no.

For example, assume a cost of $10 and a market value of $4 at the end of the first year. An unrealized loss of $6 is recognized in earnings. During the second year, the security is sold for $12. A realized gain of $8 is recognized-the increase in the market value from the end of the first year to the sale in the second year. Thus, the market decline in the first year did not exceed the recovery in year two. (It could have exceeded the recovery in year two but there is no requirement that it must.)

Explanation:

3 0
2 years ago
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