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:
The advisory fees will be "$500, 6 months or more in advance of rendering services".
Explanation:
- Whenever a nation-registered investment manager recognizes $500 (and sometimes more) of advanced consulting fees, 6 months more than before anticipation of providing services, then perhaps the consultant is deemed to have obtained ownership of customer funds being defined by NASAA.
- (In comparison, it should also be noted that perhaps the Advisers (investment) Act of year 1940 established the cap at $1,200 among Federal Covered consultants, although that wasn't the law for govt-registered consultants).
Answer:
limited resources to satisfy virtually unlimited wants.
Explanation:
The economic issue is basically that of determining whether to allow the most use of finite capital to meet limitless human needs.
Person has limitless wishes, which are seldom fulfilled, in economics studies involve how to offer greater pleasure with limited resources or how to allow effective use of limited resources.
Answer:
C. Proceeds from the disposal of a long-term asset with no gain or loss.
Explanation:
Operating activities: it involves those transactions that after net income written impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.
It would adjust the changes in working capital. In addition, the depreciation expense adds to the net revenue. And the loss on asset sales is added, while the gain on asset sales is deducted
Answer:
2.86 Q + 2,170 = overhead cost
Explanation:
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We subtract one activity level from another, the result is telling us that 1,900 units generate 5,434 additional cost
That is variable cost we divide and get the unit variable cost
cost 5434 / Unis 1900 = variable cost 2.86
Next we calcualte the fixed cost on any of both
Total Cost 14182
Variable -12012 (4,200 x 2.86)
Fixed Cost 2170
Total Cost 8748
Variable 6578 ( 2,300 x 2.86)
Fixed Cost 2170
the cost equation would be:
2.86 Q + 2,170 = overhead cost
