- Jackson Company Which Uses The High Low Method To Analyze Cost Behavior Has Determined That Machine Hours Best Predict 1 (33.17 KiB) Viewed 12 times
- Jackson Company Which Uses The High Low Method To Analyze Cost Behavior Has Determined That Machine Hours Best Predict 2 (23.69 KiB) Viewed 12 times
Jackson
Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the
company's total utilities cost. The
company's cost and machine hour usage data for the first six months of the year follow: (Click the icon to view the data.) X Data table Read the requirements Month Requirement 1. What is the variable utilities cost per machine hour? Total Cost Machine Hours 3,430 January...... $ 1,000 Let's begin by determining the formula that is used to calculate the variable cost (slope). February S 3,780 1,130 Variable cost (slope) March $ 3,768 1,080 tic S 3,700 1,280 (Round the variable cost to the nearest cent.) April May 4,700 1,390 cy Using the high-low method, the variable utilities cost per machine hour is June... $ 4,508 1,480 Requirement 2. What is the fixed cost of utilities each month? Let's begin by determining the formula that is used to calculate the fixed cost component. Fixed cost Print Done Using the high-low method, the fixed cost of utilities each month is Requirement 3. If Jackson
Company uses 1,230 machine hours in a month, what will its total costs be? (Round the variable cost per unit to two decimal places and round your total costs calculation to the nearest whole dollar) The total costs when 1,230 machine hours are used is $
BE O tie Data table Requirements Using the high-low method, answer the following
questions: 1. What is the variable utilities cost per machine hour? 2. What is the fixed cost of utilities each month? 3. If Jackson
Company uses 1,230 machine hours in a month, what will its total costs be? Print Done - X urs places and