The following information is available regarding the total repair costs of Billy's Automotive Company for six...
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The following information is available regarding the total repair costs of Billy's Automotive Company for six months of 2016: # of Units Total Cost produced January 1,600 $ 15,700 February 1,850 $ 17,300 March 1,100 $ 12,550 April 1,350 $ 14,100 May 1,975 $ 18,000 June 2,350 $ 21,050 Instruction: (show your calculations and round to 2 decimal places) (A) Compute the following using the high low method: (1) The variable element of repair cost per unit of production: (2) The fixed element of the monthly total cost: (B) Use the cost relationship determined in part (A) to estimate the total cost for July 2016, given that the production is scheduled for 2,600 units. The following information is available regarding the total repair costs of Billy's Automotive Company for six months of 2016: # of Units Total Cost produced January 1,600 $ 15,700 February 1,850 $ 17,300 March 1,100 $ 12,550 April 1,350 $ 14,100 May 1,975 $ 18,000 June 2,350 $ 21,050 Instruction: (show your calculations and round to 2 decimal places) (A) Compute the following using the high low method: (1) The variable element of repair cost per unit of production: (2) The fixed element of the monthly total cost: (B) Use the cost relationship determined in part (A) to estimate the total cost for July 2016, given that the production is scheduled for 2,600 units.
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Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078025778
17th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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