(5 Marks) GPB Manufacturers Incorporated is attempting to determine how much of their Salaries Expense for...

  

Transcribed Image Text:

(5 Marks) GPB Manufacturers Incorporated is attempting to determine how much of their Salaries Expense for the factory is a result of increased labour costs during peak production times and how much is fixed. a) Using the information below, prepare the cost equation for Salaries Expense under the High-Low Method: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Activity Level (Units) 900 880 2,400 1,800 1,500 1,100 950 1,050 1,600 1,850 2,600 2,200 2 Total Cost ($) $19,500 $20,000 $49,500 $37,777 $33,333 $24,250 $20,900 $24,050 $33,855 $39,000 $55,000 $45,555 b) Using your cost equation, project the Salary Costs for a production schedule of 2,000 Units. (5 Marks) GPB Manufacturers Incorporated is attempting to determine how much of their Salaries Expense for the factory is a result of increased labour costs during peak production times and how much is fixed. a) Using the information below, prepare the cost equation for Salaries Expense under the High-Low Method: Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Activity Level (Units) 900 880 2,400 1,800 1,500 1,100 950 1,050 1,600 1,850 2,600 2,200 2 Total Cost ($) $19,500 $20,000 $49,500 $37,777 $33,333 $24,250 $20,900 $24,050 $33,855 $39,000 $55,000 $45,555 b) Using your cost equation, project the Salary Costs for a production schedule of 2,000 Units.

Answer rating: 100% (QA)

a To prepare the cost equation for Salaries Expense using the HighLow Method we need to find the var... View the full answer