Data tableMonthTotal CostMachine HoursJanuary..3,4201,090February..... S3,7601,120March ....$ 3,5321,080April .....3,7201,220MayS 4,8001,330June4,1921,480..%24%24 Summerville Company, which uses the high-low method to analyze cost behavior, has determined that machine hours best predict the company's total utilities cost. The company's cost and machine hour usage data for the firstsix months of the year follow:E (Click the icon to view the data.)Requirement 1. What is the variable utilities cost per machine hour?Let's begin by determining the formula that is used to calculate the variable cost (slope).= Variable cost (slope)(Round the variable cost to the nearest cent.)Using the high-low method, the variable utilities cost per machine hour isRequirement 2. What is the fixed cost of utilities each month?Let's begin by determining the formula that is used to calculate the fixed cost component.Fixed costUsing the high-low method, the fixed cost of utilities each month isRequirement 3. If Summerville Company uses 1,210 machine hours in a month, what will its total costs be? (Round the variable cost per unit to two decimal places and round your total costs calculation to the nearest whole

Name: Data tableMonthTotal CostMachine HoursJanuary..3,4201,090February....
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Description: Data tableMonthTotal CostMachine HoursJanuary..3,4201,090February..... S3,7601,120March ....$ 3,5321,080April .....3,7201,220MayS 4,8001,330June4,1921,480..%24%24 Summerville Company, which uses the high-low method to analyze cost behavior, has dete

To find out the fixed cost and variable cost from mixed cost, one of the methods used is a high-low…

Business

Accounting

equirement 1. What is the variable utilities cost per machine hour? t's begin by determining the formula that is used to calculate the variable cost (slope). = Variable cost (slope) ound the variable cost to the nearest cent.) sing the high-low method, the variable utilities cost per machine hour is equirement 2. What is the fixed cost of utilities each month? t's begin by determining the formula that is used to calculate the fixed cost component. Fixed cost sing the high-low method, the fixed cost of utilities each month is aauirement 3 If Suummenville Company uses 1 210 machine houre in a month what will its total costs he? (Round the variable cost per unit to two decimal place

equirement 1. What is the variable utilities cost per machine hour? t's begin by determining the formula that is used to calculate the variable cost (slope). = Variable cost (slope) ound the variable cost to the nearest cent.) sing the high-low method, the variable utilities cost per machine hour is equirement 2. What is the fixed cost of utilities each month? t's begin by determining the formula that is used to calculate the fixed cost component. Fixed cost sing the high-low method, the fixed cost of utilities each month is aauirement 3 If Suummenville Company uses 1 210 machine houre in a month what will its total costs he? (Round the variable cost per unit to two decimal place

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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