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sammy [17]
3 years ago
9

Given the following costs and activities for Dance Company's electrical costs, use the high-low method to determine Dance's vari

able electrical costs per machine hour. Costs Machine Hours August $11,700 15,000 September 13,200 17,500 October 11,400 14,500 a.$6.00 b.$1.20 c.$0.60 d.$2.08
Business
1 answer:
Lorico [155]3 years ago
7 0

Answer:

The variable cost is $0.6 per Machine Hour. So, option C is the correct answer.

Explanation:

The high low method is a method used to calculate the variable component per unit in a mixed cost. A mixed cost is a cost which contains an element of both the fixed and the variable cost.

The formula for variable cost per unit under High-low method is,

Variable cost per unit = (Cost at Highest activity - Cost at lowest activity) / (Highest activity units - lowest activity units)

The highest activity is in September while the lowest is in October.

Variable cost per unit = (13200 - 11400) / (17500 - 14500)

Variable cost per unit = $0.6 per Machine hour

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Answer:

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Explanation:

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Contribution margin ratio = (20-5)/20=75%

Break-even (units) = Total general fixed cost /(selling price- variable cost)

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8 0
3 years ago
Fixed costs of production in the short run rev: 06_26_2018 Multiple Choice are a function of the level of variable costs. are lo
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Answer:

cannot be reduced by producing less output.

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5 0
3 years ago
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The cost of electricity. <span> because explicit costs are like accounting costs. They are direct costs that come with operating a business. A,B and C are all implicit costs, they are like opportunity costs and do not have any direct value in a accounting perspective.</span>
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4 years ago
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During October, a firm had the following transactions involving revenue and expenses. Paid $1,275 for rent for October Provided
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Answer:

Net income   $1,265

Explanation:

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4 years ago
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