Question: Help S Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as

 Help S Lichtenstein Imports needs to determine the variable utilities rate

Help S Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows. Month April May June July ine Hours Worked 6,000 S,900 8,200 10,400 vtilities Cost 10,410 10,290 12,425 14,800 2:0525 Lichtenstein anticipates producing 6,700 units in August, each unit requiring 3.0 hours of machine time. The company uses the high- low method to analyze costs. Required: A. Calculate the variable and fixed components of the utilities cost B. Using the data calculated above, estimate the utilities cost for August For all requirements, round "variable cost per hour" to 2 declimal places and final answers to the nearest dollar S 1.00 S 4,400 A. Variable cost per hour Fixed cost $ 20,100 4,400 B. Total variable cost Total foxed cost Total utilities cost for August 24,500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

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

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!