In cost accounting, the high-low method is a way of attempting to separate out fixed and variable costs given a limited amount of data. 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. If the variable cost is a fixed charge per unit and fixed costs remain the same, it is possible to determine the fixed and variable costs by solving the system of equations.
1. Calculate variable cost per unit using the identified high and low activity levels
Variable cost = (Total cost of high activity – Total cost of low activity) / (Highest activity unit – Lowest activity unit)
((112,000 X .167) - (168,000 X .132)) / (168,000-112,000) = variable costs
2. Solve for fixed costs
To calculate the total fixed costs, plug either the high or low cost and the variable cost into the total cost formula.
It doesn't appear that you have enough information to answer this section. You need to know total cost to be able to answer this.
Total cost = (Variable cost per unit x units produced) + Total fixed cost
3. Construct total cost equation based on high-low calculations
Answer:
C. because customers can show up to see what's going on you can interact with them talk to them about your product/business.
Answer:
B. False
Explanation:
Patents may be defines as when a legal authority or permission granting a right for a given time, in particular exclusive and right to exclude others from the production, use, or sale of an invention.
Therefore the given statement is wrong as patents are not discouraging the organizations from carrying out to extensive primary research so, the correct answer is False.
According to the given information, Mr Stanley would be considered an entrepreneur.
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Answer:
a. under applied.
Explanation:
For computing, whether it is under applied or over applied first, we have to compute the predetermined overhead rate. The formula is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
Now we have to find the applied overhead which equal to
= Actual direct labor-hours × predetermined overhead rate
So, the ending overhead equals to
= Actual manufacturing overhead - applied overhead
= under-applied
If actual overhead is more than the applied overhead