F Y V High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia,...

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F Y V High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: F Resource Forklift depreciation: V $ F High Indirect labor: Y High Fuel and oil for forklift: Required: Low $ Low V $ JUE Low High 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. Forklift depreciation: Indirect labor: $ + $ Fuel and oil for forklift: 2,700 Forklift depreciation Indirect labor If required, round your answers to two decimal places. Enter a "0" if required. 0 2,700 Fuel and oil for forklift X Number of Moves $ 3,500 13,500 $ 3,500 13,500 $ 3,500 13,500 Total Cost X 2. Using your knowledge of cost behavior, predict the cost of each item for an activity output level of 11,000 moves. $2,700 2,700 $70,200 122,200 $2,485 9,585 X 3. Construct a cost formula that can be used to predict the total cost of the three resources combined. If required, round your answers to two decimal places. Materials handling cost = + $ Using this formula, predict the total materials handling cost if activity output is 11,000 moves. Y = $ F Y V High-Low Method, Cost Formulas The controller of the South Charleston plant of Ravinia, Inc., monitored activities associated with materials handling costs. The high and low levels of resource usage occurred in September and March for three different resources associated with materials handling. The number of moves is the driver. The total costs of the three resources and the activity output, as measured by moves for the two different levels, are presented as follows: F Resource Forklift depreciation: V $ F High Indirect labor: Y High Fuel and oil for forklift: Required: Low $ Low V $ JUE Low High 1. Determine the cost behavior formula of each resource. Use the high-low method to assess the fixed and variable components. Forklift depreciation: Indirect labor: $ + $ Fuel and oil for forklift: 2,700 Forklift depreciation Indirect labor If required, round your answers to two decimal places. Enter a "0" if required. 0 2,700 Fuel and oil for forklift X Number of Moves $ 3,500 13,500 $ 3,500 13,500 $ 3,500 13,500 Total Cost X 2. Using your knowledge of cost behavior, predict the cost of each item for an activity output level of 11,000 moves. $2,700 2,700 $70,200 122,200 $2,485 9,585 X 3. Construct a cost formula that can be used to predict the total cost of the three resources combined. If required, round your answers to two decimal places. Materials handling cost = + $ Using this formula, predict the total materials handling cost if activity output is 11,000 moves. Y = $

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Based on the image you have provided you need to complete the cost behavior analysis for the three resources using the highlow method and predict costs at an activity level of 11000 moves Lets go thro... View the full answer