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3 years ago

High-Low Method, Cost Formulas

Business

1 answer:

DanielleElmas [232]3 years ago

7 0

Answer:

Results are below.

Explanation:

To calculate the variable and fixed costs, we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= LAC - (Variable cost per unit* LAU)

Depreciation:

Depreciation is a 100% fixed cost. It does not vary with production levels.

Indirect labor:

Variable cost per unit= (105,600 - 66,000) / (16,000 - 5,000)

Variable cost per unit= $3.6

Fixed cost= 105,600 - (3.6*16,000)

Fixed cost= $48,000

Fixed cost= 66,000 - 3.6*5,000

Fixed cost= $48,000

Total cost= 48,000 + 3.6x

Fuel and oil for forklift:

Variable cost per unit= (11,360 - 3,550) / (16,000 - 5,000)

Variable cost per unit= $0.71

Fixed cost= 11,360 - (0.71*16,000)

Fixed cost= 0

Fixed cost= 3,550 - 0.71*5,000

Fixed cost= $0

Total cost= 0.71x

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3 years ago

Which statement is true about third parties in a contract?

Arturiano [62]

Answer:

euyecshsud the answer is B !!!

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2 years ago

The current spot exchange rate is $1.55 = €1.00 and the three-month forward rate is $1.60 = €1.00. Consider a three-month Americ

Ad libitum [116K]

Answer:

$1.58 = €1.00

Explanation:

To calculate the exchange rate breakeven point, you divide the longer-term bond figure by the shorter-term bond figure, after which you’ll do a further exponential calculation, increasing the figure to the power of one divided by the disparity in the years of the two maturities.

the solution to the question is:

$5,000 option premium on €62,500 amounts to $0.08 per euro.

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3 years ago

Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $9

Leviafan [203]

Answer:

Debit cash $7800

Credit unearned revenue $7800

Explanation:

The amount of $7800 was received in cash on October 1. Therefore, the cash account will be debited with the $7800 received.

The corresponding credit entry of $7800 will be to the unearned revenue account since the revenue has not been earned. Revenue will be earned at the end of each month of the lease. This account will subsequently debited each time the revenue is earned i.e at the end of each lease month.

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3 years ago

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year w

yan [13]

Answer:

(a) the first-in, first-out (FIFO) method; $1054

(b) the last-in, first-out (LIFO) method; $998 and

Explanation:

FIFO

Inventory ; 13 units × $38 = $494

14 units × $40 = $560

Total = $1054

LIFO

Inventory ; 13 units × $38 = $494

14 units × $36 = $504

Total = $998

weighted average cost

August 7

New Cost per Unit = ((14 units × $36) + (19 units × $38)) / ( 14 units + 19 units )

= $37.15

December 11

New Cost per Unit = ((33 units × $37.15) + (14 units × $40))/( 33 units+14units)

= $38.00

Inventory Cost = 20 units × $38.00

= $760

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3 years ago