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 10:34 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 machine hours
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 machine hours
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,