Machine hours and electricity costs for Wells Industries for the past year were as follows: Machine Electricity
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Question:
Machine hours and electricity costs for Wells Industries for the past year were as follows:
Machine | Electricity | |
Mes | hours | costs |
January | 2,000 | $ 9,200 |
February | 2,320 | 10,500 |
March | 1,520 | 6,750 |
April | 2,480 | 11,500 |
Can | 3,040 | 14,125 |
June | 2,640 | 11,000 |
Julio | 3,280 | 12,375 |
August | 2,800 | 11,375 |
September | 1,600 | 7,750 |
October | 2,960 | 13,000 |
November | 3,760 | 15,500 |
December | 3,360 | 13,875 |
Required: Show your calculations!
A. | Using the high-low method, develop an estimate of variable electricity costs per machine hour. |
B. | Using the high-low method, develop an estimate of the fixed costs of electricity per month. |
C. | Using the high-low method, develop a cost function for the monthly electricity costs. |
D. | Estimate the electricity costs for a month in which 3000 machine hours are worked. |
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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