high low method machine hours

To calculate the variable cost per unit using the high-low method the change in _____ is divided by the change in _____. Lets learn togetherHigh-low method by Marrytaleif you are having a hard time understanding the high-low method I am here to catch youdont forget to subsc.

Solved Blaney Company Has One Mixed Cost It Uses Machine Hours As The Activity Level Using The High Low Method Determine The Variable And Fixed Cost Components Machine Hourst S10 600 8 600 9 600

A company incurred 12000.

. August is not the high point because its number of. Activity based costing can provide a more useful. Month Direct Labor Hours Maintenance Cost January 1700 14300 February 1900 15200 March 1800 16700 April 1600 14000.

Xiii Total working hours in the machine room is 200 hours in a month xiv Loading and unloading time is 10 of machine time xv You can make suitable assumptions if necessary. High Low Method of Machine Hours 8000 10000 11000 9000 I 14000 12000 Total Maintenance Costs 600000 640000 800000 700000 900000 870000 Required. Find the high and low points.

The companys relevant range of. High Low Method assumes a linear relationship between cost and activity which is an over simplified analysis of cost behavior. Machine Hours 9000 3000 6000 Highest Lowest Difference Utility Cost 1960 880 1080 a.

Plant activity is best measured by direct labor hours. View high low methoddocx from BSMA 401 at STI College multiple campuses. The high number of machine hours is in March and the low number of machine hours is in June.

Atlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost.

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Lewis Company Needs To Determine The Variable Utilities Rate Per Machine Hour In Order To Estimate Cost For August Relevant Information Is As Follows Lewis Anticipates Producing 5 000 Units In August Each

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Love Corporation Reports The Following Cost Information Total Cost Machine Hours January 2 100 000 3 100 February 1 900 000 2 700 March 1 200 000 1 100 A Using The High Low Method Estimated Variable Costs Per Hour Are B

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Solved Hitchcock Inc Uses The High Low Method To Analyze Cost Behavior The Company Observed That At 12 000 Machine Hours Of Activity Total Maintenance Costs Averaged 7 00 Per Hour When Activity Jumped To