ABC company incurred the following maintainance costs during the past 6 months Table 1 Months Machine...
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ABC company incurred the following maintainance costs during the past 6 months Table 1 Months Machine hours Cost 1 2200 8560 2 1000 4200 3 1200 5920 6280 4 1600 1300 1900 4020 7020 8400 7 2000 8 2300 9500 9 500 2000 REQUIRED 1. Use a scattergraph and the two points that seem to best represent the relationship between cost and activity levels of 1000 and 2000 machine hours. Use these two points , estimate the variable cost and the fixed cost [ components of maintenance costs] 2. Develop a cost furction that the conpary car use to estimate riair.tenance cost at different volune levels 3. Estimate maintenance costs for July if the company expects to use 2800 machine hours Question 2 A. Use the data on Table 1, estimate the variable and fixed cost of the company using the high and low method B. Develop a cost function for the company. C. Estimate the maintenance cost if 3000 machine hours were used in July ABC company incurred the following maintainance costs during the past 6 months Table 1 Months Machine hours Cost 1 2200 8560 2 1000 4200 3 1200 5920 6280 4 1600 1300 1900 4020 7020 8400 7 2000 8 2300 9500 9 500 2000 REQUIRED 1. Use a scattergraph and the two points that seem to best represent the relationship between cost and activity levels of 1000 and 2000 machine hours. Use these two points , estimate the variable cost and the fixed cost [ components of maintenance costs] 2. Develop a cost furction that the conpary car use to estimate riair.tenance cost at different volune levels 3. Estimate maintenance costs for July if the company expects to use 2800 machine hours Question 2 A. Use the data on Table 1, estimate the variable and fixed cost of the company using the high and low method B. Develop a cost function for the company. C. Estimate the maintenance cost if 3000 machine hours were used in July
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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