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Category > Business & Finance Posted 07 Jun 2017 My Price 3.00

Determine the fixed- and variable-cost components using the high-low method.

E5-5 The controller of Dousmann Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.

Total                           Total

 

Month

 

Maintenance Costs

 

Machine Hours

January

 

$2,750

 

3,500

February

 

3,000

 

4,000

March

 

3,600

 

6,000

April

 

4,500

 

7,900

May

 

3,200

 

5,000

June

 

5,000

 

8,000

Instructions

(a)   Determine the fixed- and variable-cost components using the high-low method.

(b)   Prepare a graph showing the behavior of maintenance costs, and identify the fixed- and variable-cost elements. Use 2,000-hour increments and $1,000 cost increments.

Answers

Alpha Geek
(8)
Status NEW Posted 07 Jun 2017 08:06 AM My Price 3.00

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Attachments

file 1496824023-Answer.docx preview (122 words )
E-----------5-5----------- T-----------he -----------con-----------tro-----------lle-----------r o-----------f D-----------ous-----------man-----------n I-----------ndu-----------str-----------ies----------- ha-----------s c-----------oll-----------ect-----------ed -----------the----------- fo-----------llo-----------win-----------g m-----------ont-----------hly----------- ex-----------pen-----------se -----------dat-----------a f-----------or -----------use----------- in----------- an-----------aly-----------zin-----------g t-----------he -----------cos-----------t b-----------eha-----------vio-----------r o-----------f m-----------ain-----------ten-----------anc-----------e c-----------ost-----------s. ----------- To-----------tal----------- Â----------- Â ----------- Â----------- Â ----------- Â----------- Â ----------- Â----------- Â ----------- Â----------- Â ----------- Â----------- Â ----------- Â----------- Â ----------- Â----------- Â ----------- Â----------- Â -----------Tot-----------al -----------  ----------- M-----------ont-----------h Â-----------  M-----------ain-----------ten-----------anc-----------e C-----------ost-----------s Â-----------  M-----------ach-----------ine----------- Ho-----------urs----------- J-----------anu-----------ary-----------  ----------- $2-----------,75-----------0 Â-----------  3-----------,50-----------0 -----------Feb-----------rua-----------ry -----------  -----------3,0-----------00 -----------  -----------4,0-----------00 ----------- Ma-----------rch-----------  ----------- 3,-----------600-----------  ----------- 6,-----------000----------- A-----------pri-----------l Â-----------  4-----------,50-----------0 Â-----------  7-----------,90-----------0 -----------May-----------  ----------- 3,-----------200-----------  ----------- 5,-----------000----------- J-----------une-----------  ----------- 5,-----------000-----------  ----------- 8,-----------000----------- I-----------nst-----------ruc-----------tio-----------ns
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