Question: Reynolds Company which uses the high low method to analyze

Reynolds 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:


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 Reynolds Company uses 1,220 machine hours in a month, what will its total costsbe?


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  • CreatedAugust 27, 2014
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