We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck...
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We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 144.000 kilometres during a year, th average operating cost is 11.8 cents ($0.118) per kilometre. If a truck is driven only 89,000 kilometres during a year, the average operating cost increases to 13.8 cents ($0.138) per kilometre Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round Intermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.) Answer is complete but not entirely correct. Kilometers Driven Total Annual Cost High level of activity 144,000 S 16,992 Low level of activity 89,000 12.282 Change 55,000 $ 4.710 Variable cost per kilometer $ 0.085 Fixed cost per year S 4,752 We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 144.000 kilometres during a year, th average operating cost is 11.8 cents ($0.118) per kilometre. If a truck is driven only 89,000 kilometres during a year, the average operating cost increases to 13.8 cents ($0.138) per kilometre Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round Intermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.) Answer is complete but not entirely correct. Kilometers Driven Total Annual Cost High level of activity 144,000 S 16,992 Low level of activity 89,000 12.282 Change 55,000 $ 4.710 Variable cost per kilometer $ 0.085 Fixed cost per year S 4,752
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Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
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