Jan Chen Transport, Ltd., operates a fleet of delivery trucks in Brampton. The company has determined...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jan Chen Transport, Ltd., operates a fleet of delivery trucks in Brampton. The company has determined that if a truck is driven 210,000 kilometers during a year, the average operating cost is 22.8 cents per kilometer. If a truck is driven only 140,000 kilometers during a year, the average operating cost increases to 26.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. Using the high-low method, estimate the fixed cost of admitting patients per month and the variable cost of admissions per patient. Activity Cost Computing the fixed cost using the high level of activity: %24 Total fixed cost 16,80,000 Jan Chen Transport, Ltd., operates a fleet of delivery trucks in Brampton. The company has determined that if a truck is driven 210,000 kilometers during a year, the average operating cost is 22.8 cents per kilometer. If a truck is driven only 140,000 kilometers during a year, the average operating cost increases to 26.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. Using the high-low method, estimate the fixed cost of admitting patients per month and the variable cost of admissions per patient. Activity Cost Computing the fixed cost using the high level of activity: %24 Total fixed cost 16,80,000
Expert Answer:
Answer rating: 100% (QA)
Operating Costs Activity Costs High level of activity ... View the full answer
Related Book For
Managerial accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
Hoi Chong Transport, Ltd; operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4...
-
Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the companys cost analyst has determined that if a truck is driven 120,000 miles during a...
-
Prompt Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the companys cost analyst has determined that if a truck is driven 120,000 kilometres during...
-
Helium gas is throttled steadily from 500 kPa and 70C. Heat is lost from the helium in the amount of 2.5 kJ/kg to the surroundings at 25C and 100 kPa. If the entropy of the helium increases by 0.25...
-
Under the indirect method, what adjustments to net income are required for the following: noncash expenses; gains and losses from non-operating activities; and changes in current assets and current...
-
Alvarado Company had the following common stock balances and transactions during the current year: What was Alvarados current year weighted average shares outstanding for basic EPS? a. 78,000 b....
-
The Lorenz equation is widely used in the theory of non-linear equations and was encountered in modeling of natural convection. While working with these equations Lorenz discovered the phenomena of...
-
Easy-Tech Software Corporation is evaluating the production of a new software product to compete with the popular word processing software currently available. Annual fixed costs of producing the...
-
Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). These products are highly regarded network maintenance programs. Cloud-X is used for small...
-
1. Which aspect of the French revolution most disturbed commentators? 2. How would you align each of these writers on a spectrum running from extreme right to extreme left in politics? 3. How would...
-
You are given the following information about Company ABC as at 31/12/2023 Premises Shs 25,000,000 Motor vehicles Shs 2,000,000 Electricity bills (Owings) shs500, 000 Creditors' Shs 4,500,000 Cash in...
-
Air at 2 a t m 2 a t m and 500 K 500 K with a velocity of U = 20 m / s U = 20 m / s flows across a compact heat exchanger matrix having surface type I1.32-0737-S-R. The length of the matrix is...
-
It is desired to transmit \(2000 \mathrm{MW}\) from a power plant to a load center located \(300 \mathrm{~km}\) from the plant. Determine the number of \(60 \mathrm{~Hz}\), threephase, uncompensated...
-
A gas is inside a cylinder fitted with a piston. The gas and its surroundings are both at \(20^{\circ} \mathrm{C}\), and the gas is compressed as the piston moves and decreases the cylinder volume....
-
Suppose the accumulated cost of a piece of equipment is \(C(t)\) and the accumulated revenue is \(R(t)\), where both of these are measured in thousands of dollars and \(t\) is the number of years...
-
__________ is an important part of project management. Change management Organizational culture Pragmatic culture Organizational change
-
Revvit is an online motorcycle equipment store that sells motorcycle helmets, boots, jackets, and more. With no brick-and-mortar stores, Revvit relies on many systems to provide an excellent customer...
-
Willingness to pay as a measure of a person's value for a particular good measures the maximum a person would be willing to pay requires that payment actually be made depends on the satisfaction that...
-
Define the following terms: incremental cost, opportunity cost, and sunk cost.
-
Listed below are costs found in various organizations. 1. Depreciation, executive jet. 2. Costs of shipping finished goods to customers. 3. Wood used in manufacturing furniture. 4. Sales managers...
-
For many years, Gorski Company manufactured a single product called a mono-circuit. Then, three years ago, the company automated a portion of its plant and at the same time introduced a second...
-
Find an example of (angles corresponding to) another violation of the Bell-CHSH inequality by quantum mechanics, which is not maximal but is more generic.
-
In quantum cosmology, one can define a "wave function of the Universe" \(\Psi[a(t)]\), whose variable is the expanding scale factor of the Universe, \(a(t)\), and which satisfies a general relativity...
-
If we consider five measurements instead of the four in the Bell-CHSH inequality, namely \ (a, a^{\prime}, a^{\prime \prime}\) for Alice and \ (b, b^{\prime}\) for Bob, can we extend the Bell-CHSH...
Study smarter with the SolutionInn App