Question 4 Utility costs at one UISZ Power Corporation's factories are listed below: Machines hours Utility cost $ Feb 4
Posted: Tue Apr 26, 2022 10:30 am
Question 4
Utility costs at one UISZ Power Corporation's factories are
listed below:
Machines hours Utility cost $
Feb 4221 39,308
match 4268 39,573
April 4234 39,392
may 4237 39,394
June 4299 39,787
July 4318 39,881
Aug 4305 39,798
Sep 4308 39,831
Oct 4226 39,315
Management believes that utility cost is a mixed cost that
depends on machinehours
Required:
a) Estimate the variable cost per machine-hour. Show your
work.
b) Using the high-low method to calculate the fixed cost per
month.
c) If the company uses 4800 machine hours in November, how much
will the total utility bill be? (Round any intermediate
calculations to the nearest cent and your final answer to the
nearest dollar. State two disadvantages of high-low method. (Word
limit: 100 words,
d) Define total and unit fixed and variable cost. Explain why
the distinction between the two types of costs is important. (Word
limit: 100 words,
Utility costs at one UISZ Power Corporation's factories are
listed below:
Machines hours Utility cost $
Feb 4221 39,308
match 4268 39,573
April 4234 39,392
may 4237 39,394
June 4299 39,787
July 4318 39,881
Aug 4305 39,798
Sep 4308 39,831
Oct 4226 39,315
Management believes that utility cost is a mixed cost that
depends on machinehours
Required:
a) Estimate the variable cost per machine-hour. Show your
work.
b) Using the high-low method to calculate the fixed cost per
month.
c) If the company uses 4800 machine hours in November, how much
will the total utility bill be? (Round any intermediate
calculations to the nearest cent and your final answer to the
nearest dollar. State two disadvantages of high-low method. (Word
limit: 100 words,
d) Define total and unit fixed and variable cost. Explain why
the distinction between the two types of costs is important. (Word
limit: 100 words,