Question
In: Finance
Thomas Train has collected the following information over the last six months.
Thomas Train has collected the following information over the last six months.
| Month | Units produced | Total costs |
| March | 10,000 | $25,600 |
| April | 12,000 | 26,200 |
| May | 19,600 | 28,000 |
| June | 13,000 | 26,450 |
| July | 12,000 | 26,000 |
| August | 15,000 | 26,500 |
Using the high-low method, what is the variable cost per unit?
Round to two decimal places.
Solutions
Expert Solution
Variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)
=(28000-25600)/(19600-10,000)
which is equal to
=$0.25 per unit
jeff jeffy answered 2 years agoRelated Solutions
ABC Company has the following sales budget for the last six months of 2020:
Note: Not all sales are always collected. Remember Bad Debt Expense. So don’t worry if the problems do not add up to 100%.
1. ABC Company has the following sales budget for the last six months of 2020:
July $9,000
August $8,000
September $11,000
October $9,000
Historically, the cash collection of sales has been as follows:
35% of sales collected in the month of sale,
45% of sales collected in the month...
Copper Corporation has the following sales budget for the last six months of 2016:
Copper Corporation has the following sales budget for the last six months of 2016:July$200,000October$180,000August160,000November200,000September220,000December188,000Historically, the cash collection of sales has been as follows:65 percent of sales collected in month of sale,25 percent of sales collected in month following sale,8 percent of sales collected in second month following sale, and2 percent of sales is uncollectable.Cash collections for October are$117,000.$174,000.$184,800.$199,000.$176,400.
The following information is available for a company’s maintenance cost over the last seven months. Month...
The following information is available for a company’s
maintenance cost over the last seven months.
Month
Maintenance Hours
Maintenance Cost
June
11
$
5,050
July
17
6,850
August
13
5,650
September
16
6,550
October
22
8,350
November
25
9,250
December
7
3,850
Using the high-low method, estimate both the fixed and variable
components of its maintenance cost.
High-Low method - Calculation of variable cost per maintenance
hour
Change in cost
Cost at high point minus cost at low point
Variable...
The following information is available for a company’s maintenance cost over the last seven months. Month...
The following information is available for a company’s
maintenance cost over the last seven months.
Month
Maintenance Hours
Maintenance Cost
June
10
$
3,950
July
19
5,390
August
11
4,110
September
14
4,590
October
20
5,550
November
23
6,030
December
5
3,150
Using the high-low method, estimate both the fixed and variable
components of its maintenance cost.
High-Low method - Calculation of variable cost per maintenance
hour
Total cost at the high point
Variable costs at the high point:...
The following information is available for a company’s maintenance cost over the last seven months. Month...
The following information is available for a company’s
maintenance cost over the last seven months.
Month
Maintenance Hours
Maintenance Cost
June
9
$
3,950
July
18
5,750
August
12
4,550
September
15
5,150
October
21
6,350
November
24
6,950
December
6
3,350
Using the high-low method, estimate both the fixed and variable
components of its maintenance cost.
High- Low method calculation of variable cost per maintenance
hour
__________________ ____________________ ____________
_______________ __________0
_________________ ____________________ _______________
Total cost at the high...
Fromme's Frocks has the following machine hours and production costs for the last six months of...
Fromme's Frocks has the following machine hours and production
costs for the last six months of last year:
Month
Machine Hours
Production Cost
July
15,000
$12,075
August
13,500
10,800
September
11,500
9,580
October
15,500
12,080
November
14,800
11,692
December
12,100
9,922
If Fromme expects to incur 14,000 machine hours in January,
what will be the estimated total production cost using the high-low
method?
Fromme's Frocks has the following machine hours and production costs for the last six months of...
Fromme's Frocks has the following machine hours and production
costs for the last six months of last year:
Month Machine Hours Production Cost July 16,600 $ 12,155 August
15,100 12,400 September 13,100 9,740 October 17,100 12,240 November
16,400 11,772 December 13,700 9,970 If Fromme expects to incur
12,200 machine hours in January, what will be the estimated total
production cost using the high-low method? $8,732.63. $9,177.50.
$7,625.00. $19,865.00.
Suppose a company has the following sales for the last six months (January – June): Month...
Suppose a company has the following sales for the last six
months (January – June):
Month
Period
Sales
January
1
16
February
2
25
March
3
20
April
4
20
May
5
31
June
6
35
July
7
26
August
8
(a)
Use exponential smoothing (a= 0.10) to forecast the sales for
August (to 2 decimals). What is the value?
Compute the MSE for the exponential smoothing method from the
above question (to 2 decimals).
Use a 2-period moving average...
(1) Fromme's Frocks has the following machine hours and production costs for the last six months...
(1) Fromme's Frocks has the following machine hours and
production costs for the last six months of last year:
Month
Machine Hours
Production Cost
July
17,000
$
12,175
August
15,500
12,800
September
13,500
9,820
October
17,500
12,280
November
16,800
11,792
December
14,100
9,982
If Fromme expects to incur 12,600 machine hours in January, what
will be the estimated total production cost using the high-low
method?
(A) $20,029.00.
(B) $8,841.60.
(C) $7,749.00.
(D) $9,266.50.
(3)
Case
(A)
Case
(B)
Case
(C)...
For the last six months, Jill has been with A&A Accounting, a multi-billion dollar entity. A&A...
For the last six months, Jill has been with A&A Accounting,
a multi-billion dollar entity. A&A has a high-level person
responsible for their ethics compliance program who requires all
personnel to view 20 hours of compliance videos. While on a flight
to another city, Jill happened to sit behind A&A’s ethics
officer and overheard the following: “Yes, Bill, we do have a
pretty good compliance program, but it’s really just window
dressing. Because of the Federal Sentencing Guidelines we have...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- I have a problem with my code. It does not run. Please can someone check the...
- As discussed in the text, in the absence of market imperfections and tax effects, we would...
- //This is an ArrayReverser Problem.. import java.util.Scanner; public class Main { public static void main(String[] args)...
- After completing its capital spending for the year, Carlson Manufacturing has $1,100 extra cash. Carlson’s managers...
- Question 2: How can we find the real root of a polynomial with one variable? Also...
- Apply the Cognitive/Affective/Behavior Attitude model to a day to day personal life experience at work, home...
- you may not use the Python ord() or chr() functions you may not use the Python...
ADVERTISEMENT