high low method machine hours
Your answer is correct. The electricity cost which varies in relation to machine hours is 050.
The companys relevant range of activity varies from a low of 600 machine hours to a high of 1200 machine hours with the following data being available for the first six months of the year.
. Up to 256 cash back 2. Round unit cost to 2 decimal places eg. What is the estimate of the total cost when 300 machine-hours are used.
High-Low method is one of the several mathematical techniques used in managerial accounting to split a mixed cost into its fixed and variable components. The companys cost and machine hour usage data for the first six months of the year follow. The total predicted overhead costs for the month is 489500.
Related
What total overhead cost would you expect to beincurred at an activity level of 46000 machine-hours. Barkoff Enterprises which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost. The highest and the.
Machine-hours Labor Costs Highest observation of cost driver 400 10000 Lowest observation of cost driver 240 6800 2. Activity based costing can provide a more useful analysis of the behavior of cost in relation to distinct activities. 13000 machine hours are worked.
Express the companyâ s total overhead cost in theform Y a bX. Use the high-low method to estimate the variable cost per machine hour and the fixed cost per month. Hotlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost.
Use the high-low method to determine the hospitals cost equation using nursing hours as the cost driver. Crane Inc has collected the following information on its cost of electricity. 5275 Your answer is correct.
Level of Activity Low. Using the high-low method estimate a cost formula formaintenance in the form Y a bX. B Click the icon to view the data Read the requirements.
It is a nominal difference and choosing either fixed cost for our cost model will suffice. Determine the variable cost. In cost accounting a way of attempting to separate out fixed and variable costs given a limited amount of data.
Machine Hours Electrical Cost January 4000 3120 February 6000 4460 March 4800 3500 April 5800 5040 May 3600 2900 June 4200 3200 Required. High Low Method assumes a linear relationship between cost and activity which is an over simplified analysis of cost behavior. Assume that the relevant range includes all of the activity levels mentioned in this problem.
Predicting Cost Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility. The companys relevant range of activity varies from a low of 600 machine hours to a high of 1100 machine hours with the following data being available for the first six months of the year. As a result of analyzing the relationship of total factory overhead to changes in machine hours the following relationship was found.
Mixed costs are costs that are partially variable and partially fixed. A 25400 B 25560. Note that our fixed cost differs by 635 depending on whether we use the high or low activity cost.
If 29000 machine hours were budgeted for the next period estimated semi-variable costs would total. Predict the level of maintenance cost that would be incurred during a month when 45000 machine hours are worked. Month Utilities Machine Hours January.
300 050 X. High-low method is used to separate the variable and fixed cost element of a mixed cost or semi variable expense. The cost of electricity used in a factory is likely to be a mixed cost since some of the electricity will vary with the number of machine hours while some of the.
Month Maintenance Cost Machine Hours. The information for 20x3 is provided below. Using the high-low method compute the variable cost of electricity per machine hour.
J Jones Created Date. This equation was probably found by using the mathematical techniques called. Compute the total fixed cost of electricity.
Machine-Hours Maintenance Costs Highest observation of cost driver 140000 280000 Lowest observation of cost driver 95000 190000 Difference 45000 90000 Maintenance costs a b Machine-hours Slope coefficient b 90000 45000 2 per machine-hour Constant a 280000 280000 0 or Constant a 190000. Variable Cost 750 - 500 900 - 400. A manufacturing company estimates semi-variable costs by using the high-low method with machine hours as the cost driver.
The Cost function will be. High Low Method is not representative of entire data as it is based on just 2 activity levels. Tran Company which uses the high-low method to analyze cost behavior has determined that machine hours best predict the companys total utilities cost.
Round the variable cost to the nearest cent y 1310 x 162000 Predict total overhead costs if 25 comma 00025000 nursing hours are predicted for the month. Units labor hours machine hours etc and the corresponding total cost figures high-low method only takes two extreme data pairs ie. These costs in Argentinian pesos at high and low levels of activity over recent years are given below.
Identify the high and low points. Assuming Cosco Company uses the high - low method of analysis if machine hours are budgeted to be 20000 hours then the budgeted total maintenance cost would be expected to be. Y bar 1000 2 x bar.
Recent data are shown below. Given a set of data pairs of activity levels ie. Monday June 14 1999 94351 AM.
Assuming Cosco Company uses the high-low method of analysis the fixed cost of maintenance would be. The companys relevant range of activity varies from a low of 600 machine hours to a high of 1200 machine hours with the following data being available for the first six months of the year. Using either the high or low activity cost should yield approximately the same fixed cost value.
The high-low method involves taking the highest level of activity. Problem 5-23 High-Low Method. The high-low method is a simple technique for computing the variable cost rate and the total amount of fixed costs that are part of mixed costs.
Hotlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost. Using the high-low method of analysis estimate the variable electrical cost per machine hour. Barkoff Enterprises which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost.
The companys relevant range of activity varies from a low of 600 machine hours to a high of 1100 machine hours with the following data being available for the first six months of the year. The Hunter Company uses the high-low method to estimate the cost function. Fixed cost 105450 7497 x 1000 30480.
High Low Method Calculate Variable Cost Per Unit And Fixed Cost
High Low Method In Accounting Definition Formula
Toyota Production System Staff Motivation Leadership Skills Kaizen
High Low Method In Accounting Definition Formula
High Low Method Calculate Variable Cost Per Unit And Fixed Cost
High Low Method Accounting Meaning Formula Example And More In 2021 Accounting Accounting Principles Accounting Education
High Low Method In Accounting Definition Formula
High Low Method Calculate Variable Cost Per Unit And Fixed Cost
Datadash Com Method To Create A Dataframe In Numpy And Pandas U Machine Learning Artificial Intelligence Data Science Machine Learning
High Low Method Learn How To Create A High Low Cost Model
Calculation Of Overhead Absorption Rate Basic Concepts Of Financial Accounting For Cpa Exam
High Low Method Learn How To Create A High Low Cost Model
High Low Method Calculate Variable Cost Per Unit And Fixed Cost
Pin On 2019 Upcoming Trending Styles
High Low Method In Accounting Definition Formula
/cost-accounting-b615845be6d5418e8b79152f473a902f.jpg)
High Low Method Definition
High Low Method In Accounting Definition Formula
Low Carb Paleo Indian Flat Bread Roti Indian Flat Bread High Protein Flour Low Carb Bread
Real Simple Cooking Real Simple Food
