Month Volume of Production (Number of Loaves) Equipment Maintenance Costs June 491,000 $7,037 July 409,000 $6,073 August
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Question:
Month | Volume of Production (Number of Loaves) | Equipment Maintenance Costs |
June | 491,000 | $7,037 |
July | 409,000 | $6,073 |
August | 324,000 | $5,073 |
September | 109,000 | $2,545 |
October | 535,000 | $7,555 |
November | 310,000 | $4,909 |
Do not enter dollar signs or commas in the input boxes.
a) Calculate the variable rate for the equipment maintenance cost.
Round your answer to 5 decimal places.
Variable Cost per Unit: $Answer
b) Calculate the fixed portion of the equipment maintenance cost.
Round your answer to the nearest whole number.
Fixed Cost: $Answer
c) Assume that 420,000 loaves is the budgeted production level for November. Using the results of the high-low method in parts a) and b), what is the expected total equipment maintenance cost for November?
Round your answer to 2 decimal places.
Expected total equipment maintenance cost for November
Related Book For
Managerial Accounting Decision Making and Motivating Performance
ISBN: 978-0137024872
1st edition
Authors: Srikant M. Datar, Madhav V. Rajan
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