Question: Meyer Company, which uses the high- low method to analyze cost behavior, has determined that machine hours best predict the companys total utilities cost. The

Meyer 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 Meyer Company uses 1,280 machine hours in a month, what will its total costsbe?

Month January February. March.. April May.. June.. Total Cost $3,450 $3,720 $3,467 $3,730 $4,900 $4,232 Machine Hours 1,020 1,110 1,010 1,270 1,320 1,460

Step by Step Solution

★★★★★

3.36 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Req 1 High June Low March Change in cost 4232 3467 76... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

322-B-M-A-C-B (873).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Georgia bleadown company uses the high low method to analyze production costs. The following information related to the production data for the first six months of the year. What is the estimated...

Reynolds Company, which uses the high- low method to analyze cost behavior, has determined that machine hours best predict the companys total utilities cost. The companys cost and machine hour usage...

Jackson Company, which uses the high-low method to analyze cost behaviour, has determined that machine hours best predict the companys total utilities cost. The companys cost and machine hour usage...

Meyer Company, which uses the high low method to analyze cost behaviour, has determined the machine hours best predict the company's totales cost the company's cost and machine hour usage data for...

please do all requirments Baele Company which uses the high low method to analyze cost behavior, has determined that machine hours best predict the company's total utiries cost. The company's cost...

Jackson Company, which uses the high low method to analyze cost behaviour has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage...

Methanext Premium Corporation, which uses the high low method to analyze cost behaviour, has determined that machine hours best predict the company's total utilities cost. The company's cost and...

Tran?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...

Can someone help me with this? I have no clue what I'm doing. Thank you! impany, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's...

Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity...

Refer to Exercise 19.6. Suppose upon examining the data logs from the study the researchers determined that the CO emissions monitoring device was probably not functioning properly for the following...

a. Let e represent the average problem-solving rate in problems per hour for Emily, and let a represent the average rate in problems per hour for Alejandro. b. This is the equation for Monday. 3...

4 . Interest income consists of the following: Citibank \ ( \ $ 1 , 0 0 0 \ ) Microsoft Corp bond \ $ 2 0 0 Wells Forgo 5 0 0 City of Long Beach \ $ 1 8 0 5 . Dividend income consists of the...

Briefly describe the history of stop-and-frisk law.

The Color World Paint Company prepares and packages paint products. The company has two departments: (1) Blending and (2) Packaging. Direct materials are added at the beginning of the blending...

Return to the Blending Department for the Color World Paint Company in E5-26A. In E5-26A Department are as follows: Gallons: Beginning work in process inventory...

Woodson Dairy produces an organic butter that is sold by the pound. The production of the butter begins in the Churning Department. Data for the Churning Department for January follows: Units in...

Let X be a random variable, which has a density function f depending on the parameter > 1 f ( x ; ) = {( 1 ) ( x 2 ) 2 , when 2 3 and 0 , otherwise. We have a random sample ( X 1 , ... , X n ) , the...

Consider a 3-year risk-free bond, which pays annual coupons. The coupon rate is 3.5% and the face value is 500. The bond is issued at time t=0, pays coupons at time t=1,2,3 and face value at time...

In the class BinaryNodeTree, the public traversal methods each call a protected method that performs the actual recursion.a . Trueb. False