Maple Rose Leather is a medium-size business that specializes in the design, production and sale of...
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Maple Rose Leather is a medium-size business that specializes in the design, production and sale of high quality leather wallets, notebook covers and bags. For year 2020, the company gathered the following information on utility costs and shop equipment usage for the last six months. Month Utility Costs Shop Equipment Hours July 246 August September $3,415 3,850 3,225 October 3,560 3,890 4,015 November December 289 238 260 292 315 Instructions Using the high-low method of analyzing costs, answer the following questions and show computations to support your answer. (a) What is the estimated varjable portion of utility costs per shop equipment hour? (1 mark) (b) What is the estimated fixed utility costs each month? (4 marks) Maple Rose Leather is a medium-size business that specializes in the design, production and sale of high quality leather wallets, notebook covers and bags. For year 2020, the company gathered the following information on utility costs and shop equipment usage for the last six months. Month Utility Costs Shop Equipment Hours July 246 August September $3,415 3,850 3,225 October 3,560 3,890 4,015 November December 289 238 260 292 315 Instructions Using the high-low method of analyzing costs, answer the following questions and show computations to support your answer. (a) What is the estimated varjable portion of utility costs per shop equipment hour? (1 mark) (b) What is the estimated fixed utility costs each month? (4 marks)
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To calculate the estimated variable portion of utility costs per shop equipment hour using the highl... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1111824402
2nd edition
Authors: Don R. Hansen, Maryanne M. Mowen
Posted Date:
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