May 4,500 ACTIVITY 2 COST BEHAVOR, COST FUNCTION, and HIGH LOW METHOD The following are data from Maxene Company: April Sales in units 3, 200 Cost: Costs P6, 400 Cost T P5, 600 Cost u P7, 100 Cost v P4, 480 Cost w P3, 950 1. Which of the cost classifications best describes Cost T? 2. Which of the cost classifications best describe Cost V? 3. Which of the cost classifications best describe Cost W? P9,000 P5, 600 P7, 100 P6, 300 P5, 250 Johnson Corporation is preparing a flexible budget and desires to separate its electricity expense which is semi-variable and fluctuates with total machine hours, into its fixed and variable components. Information for the first three months of 2013 is as follows: Machine hours Electricity Expense January 3,500 P31, 500 February 2,000 P20,000 March 4,000 P35, 600 Requirements: Using the least square method, 4. Compute the variable rate per machine hour 5. Compute the fixed portion of Johnson's electricity expense 6. Compute the total manufacturing cost if actual machine hours is 6,000 As part of a cost study, the cost accountant of Shinly Corporation has recorded the cost of operations at seven different levels of materials usage. The records show the following: Kilos of materials Costs of operation 80 P800 60 P480 20 P320 120 P1, 200 140 P1, 280 40 P480 100 P1, 040 7. Using the high-low points method, the variable cost of operations per kilo of materials used is 8. Using the same high-low points method, the fixed cost of operations is