Using High Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Speedy Petes is a small start up company that delivers high end coffee drinks to large metropolitan office buildings via a cutting edge motorized coffee cart to compete with other premium coffee shops Data for the past 8 months were collected as follows Month Delivery Cost Number of Deliveries May $63,450 1,800 June 67,120 2,010 July 66,990 2,175 August 68,020 2,200 September 73,400 2,550 October 72,850 2,630 November 75,450 2,800 December 73,300 2,725 Speedy Petes controller wants to calculate the fixed and variable costs associated with its cutting edge delivery service Required 1 Using the high low method, calculate the fixed cost of deliveries 2 Using the high low method, calculate the variable rate per delivery 3 Using the high low method, construct the cost formula for total delivery cost Total Delivery Cost

The Answer is in the image, click to view ...

Question: Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Speedy Petes is a small start-up company that delivers high-end

Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function

Speedy Petes is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows:

Month	Delivery Cost	Number of Deliveries
May	$63,450	1,800
June	67,120	2,010
July	66,990	2,175
August	68,020	2,200
September	73,400	2,550
October	72,850	2,630
November	75,450	2,800
December	73,300	2,725

Speedy Petes controller wants to calculate the fixed and variable costs associated with its cutting-edge delivery service.

Required:

1. Using the high-low method, calculate the fixed cost of deliveries.

2. Using the high-low method, calculate the variable rate per delivery.

3. Using the high-low method, construct the cost formula for total delivery cost.

Total Delivery Cost =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

2. Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large...

Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large metropolitan...

Please provide explanation Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Speedy Pete's is a small start-up company that delivers high-end coffee...

Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Speedy Petes is a small start-up company that delivers high-end coffee drinks to large metropolitan...

need help Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function ? Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large...

need some help. Brief Exercise 3-26 Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Refer to the information for Speedy Pete's above. Speedy Pete's...

Using High-Low to Calculate Fixed Cost, Calculate the Variable Rate, and Construct a Cost Function Pizza Vesuvio makes specialty pizzas. Vesuvio's controller wants to calculate the fixed and variable...

Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Speedy Pete's is a small start-up company that delivers high-end coffee...

A study by the U.S. Small Business Administration used historical data to model the GDP per capita of 24 of the countries in the Organization for Economic Cooperation and Development (OECD) (Crain,...

List and briefly describe the major types of shoplifters.

In the course of an engagement to compile unaudited financial statements, the client requests that the accountant perform normal accounts receivable audit confirmation procedures. ( S ) he agrees and...

An integrated supply chain requires q , Multiple Choice sharing secret information working with competitors collaboration with partners questionable legal relationships

Describe how an HR department in a health care organization might evolve through different organizational models as a department grows and matures.

How do the expectations of an organizations CEO shape the model or manner in which HR services are delivered?

Under what organizational circumstances could the following models of HR be successful in a health care organization: Clerical Model, Control Model, Industrial Relations Model, Legal Model,...