Question
In: Accounting
Question text Relevant Range and High-Low Method The following selected data relate to the major cost...
Question text
Relevant Range
and High-Low Method
The following selected data relate to the major cost categories
experienced by Shaw Company at varying levels of operating volumes.
Assuming that all operating volumes are within the relevant range,
calculate the appropriate costs in each column in which blanks
appear:
| Total Cost (@ 3,000 Units) | Total Cost (@ 4,000 units) | Variable Cost per Unit | Total Fixed Cost | Total Cost (@ 5,000 units) | |
|---|---|---|---|---|---|
| Direct labor (variable) | $72,000 | $96,000 |
Answer
Correct |
Answer
Correct |
Answer
Incorrect |
| Factory supervision (semi-variable) | 50,000 | 65,000 |
Answer
Correct |
Answer
Incorrect |
Answer
Incorrect |
| Factory depreciation (fixed) | 42,000 | 42,000 |
Answer
Correct |
Answer
Correct |
Answer
Correct |
Solutions
Expert Solution
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ekkarill92 answered 1 year agoRelated Solutions
Relevant Range and High-Low Method The following selected data relate to the major cost categories experienced...
Relevant Range and High-Low Method
The following selected data relate to the major cost categories
experienced by Shaw Company at varying levels of operating volumes.
Assuming that all operating volumes are within the relevant range,
calculate the appropriate costs in each column in which blanks
appear:
Total Cost (@ 3,000 Units)
Total Cost (@ 4,000 units)
Variable Cost per Unit
Total Fixed Cost
Total Cost (@ 5,000 units)
Direct labor (variable)
$51,000
$68,000
Answer
Answer
Answer
Factory supervision (semi-variable)
50,000...
Relevant Range and High-Low Method The following selected data relate to the major cost categories experienced...
Relevant Range and High-Low Method The following selected data
relate to the major cost categories experienced by Shaw Company at
varying levels of operating volumes. Assuming that all operating
volumes are within the relevant range, calculate the appropriate
costs in each column in which blanks appear: Total Cost (@ 3,000
Units) Total Cost (@ 4,000 units) Variable Cost per Unit Total
Fixed Cost Total Cost (@ 5,000 units) Direct labor (variable)
$57,000 $76,000 $Answer $Answer $Answer Factory supervision
(semi-variable) 50,000...
Question One High-Low Method, High—Low Method, Cost Formulas (LO 3) During the past year, the high...
Question One
High-Low Method, High—Low
Method, Cost Formulas (LO 3)
During the past year, the high and low
use of three different resources for Wilson Trucking occurred in
July and April.
The resources are truck depreciation,
fuel, and truck maintenance.
The number of kilometres travelled is
the driver. The total costs of the three resources and the related
number of truck kilometres are as follows:
Resource
Truck Kilometres Total Cost ($)
Truck depreciation:
High
46,000,000 2,800,000
Low
32,400,000 2,800,000
Fuel:...
High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost...
High-low method
Ziegler Inc. has decided to use the high-low method to estimate
the total cost and the fixed and variable cost components of the
total cost. The data for various levels of production are as
follows:
Units Produced
Total Costs
104,500
$30,703,250
119,500
33,380,750
136,500
36,415,250
This information has been collected in the Microsoft Excel
Online file. Open the spreadsheet, perform the required analysis,
and input your answers in the questions below.
Determine the variable cost per unit and...
High-Low Method, Cost Formulas During the past year, the high and low use of three different...
High-Low Method, Cost Formulas During the past year, the high
and low use of three different resources for Fly High Airlines
occurred in July and April. The resources are airplane
depreciation, fuel, and airplane maintenance. The number of
airplane flight hours is the driver. The total costs of the three
resources and the related number of airplane flight hours are as
follows: Resource Airplane Flight Hours Total Cost Airplane
depreciation: High 44,000 $ 18,400,000 Low 28,000 $ 18,400,000
Fuel: High...
High-Low Method, Cost Formulas During the past year, the high and low use of three different...
High-Low Method, Cost Formulas
During the past year, the high and low use of three different
resources for Fly High Airlines occurred in July and April. The
resources are airplane depreciation, fuel, and airplane
maintenance. The number of airplane flight hours is the driver. The
total costs of the three resources and the related number of
airplane flight hours are as follows:
Resource
Airplane Flight
Hours
Total Cost
Airplane depreciation:
High
44,000
$ 18,000,000
Low
28,000
$ 18,000,000
Fuel:
High...
35) The following data has been assembled for John Company. Use the high-low method. Month Cost &nb
35) The following data has been assembled for John Company. Use
the high-low method.
Month
Cost
Hours
January
$24,400
2,000
February
$39,000
2,200
March
$35,280
2,750
April
$36,400
3,500
May
$40,000
4,000
The expected total cost at an operating level of 1,900 hours is
________.
A) $23,180
B) $23,620
C) $24,000
D) $24,400
I want to talk about the relevant range is the range :Relevant range::Cost behaviorrelevant range:of the...
I want to talk about the relevant range is the range :Relevant
range::Cost behaviorrelevant range:of the volume of activity where
total fixed costs remain constant and the variable cost per unit
remains constant. Can someone provide an example?
Give a numerical example of cost function method the high-low method and analyze this cost function? Discuss...
Give a numerical example of cost function method the
high-low method and analyze this cost function?
Discuss how is this cost function used in decision making?
given the following cost and observation for smithson company utilities, use the high-low method to calculate...
given the following cost and observation for smithson company
utilities, use the high-low method to calculate smithsons fixed
cost per month. round your final answerr to the nearest dollar. do
not round interim calculation. cost january 26100 machine hours
10000..february 37900, machine hours 18200.. march 28500, machine
hours 12200,, april 30700, machine hours 15300
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