Question: What is the correct solution for this exercise? 3-2A Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co.,

What is the correct solution for this exercise?

3-2A Division of Mixed Costs into Variable and Fixed Components

Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how much is variable. The following data are the only records available:

Month Machine Hours Support Costs

May 1,700 $ 22,000 High

June 1,600 21,000

July 1,500 19,500

August 1,400 18,500

September 1,300 18,000 Low

Find cost and the variable support cost per machine hour by the high-low method.

Explain how your analysis for requirement 1 would change if new October data were received and machine hours were 1,650 and support costs were $24,000.

A least-squares regression analysis gave the following output:

Regression equation: Y = $4,050 + $10.50 X

What recommendations would you give the president based on these analyses?

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!

Title Subtitle Subtle lu-ats x,x'a-y.A-1 :-a- Norma] 1NoSpac" Heading 1 Headirg 2 3-A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co., has asked...

3 A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs....

3-A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs....

3 A2 Division of Mixed Costs into Variable and Fixed Components Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs....

DISCUSSION QUESTION 1-2 MA610 Managerial Accounting Lesson 1: Managerial Accounting Basics Upon completion of the Required Readings, write a thorough, well-planned narrative answer to the following...

Solve armacist | explor... Dell Bing PM Perfect Money - Wa... New Tab CHAPTER TEN - + ) Page view A Read aloud | T Add text | Draw 1. Prepare a report showing the support costs of both signs using...

3-A3 Division of Mixed Costs into Variable and Fixed Components Martina Fernandez, president of Evert Tool, Co., has asked for information about the cost behaviore manufacturing support costs....

I need some help with both Case 1 and Case 2 of this assignment. See attached document for full assignment. Here is an excerpt from each. Case 1: Purchase Point Media Corporation (PPMC) Media...

Molly Flutie, president of First Tool, Co., has asked for information about the cost behavior of manufacturing support costs. Specifically, she wants to know how much support cost is fixed and how...

For Graphing: If the symbol in the inequality is , use an open circle. If the symbol in the inequality is or , use a closed circle. Inequality Notation x

A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data (assets are shown at net realizable values): Assets...

If ATT's 8 % 2 0 4 0 bonds are selling for 1 0 3 % of the par value, the yield to maturity of this issue must be higher than 8 % .

5. Develop a scenario comparing two PH programs and involving the use of a CBA.

Discuss the five approaches to performance management, the specific techniques used in each approach, and the way these approaches compare with the criteria for effective performance management...

Discuss the advantages and disadvantages of the different sources of performance information. page 350

Distinguish types of rating errors, and explain how to minimize each in a performance evaluation. page 358