Q1.Molca Salsa produces burritos. The company controller wants to calculate the fixed and variable costs associated with
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Q1.Molca Salsa produces burritos. The company controller wants to calculate the fixed and variable costs associated with the burrito costs incurred in the factory. Data for the past four months were collected.
Month | Burrito costs | Machine hours |
January | $20,500 | 820 |
February | 15,850 | 355 |
March | 25,650 | 845 |
April | 18,910 | 730 |
Using the high-low method calculate the fixed cost of the burrito services.
Group of answer choices
$41,405
$8,750
$9,800
$31,605
Q2. Refer to the figure in question 1. What would Molca Salsa’s estimate of total burrito cost be at a level of 780 machine hours?
Group of answer choices
$24,350
$38,220
$48,020
none of these are correct
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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