tory Bookmarks People Window Help FLAXww Nort X Purple Brie

tory Bookmarks People Window Help FLAX(-ww. Nort X Purple Brie X, a Take Test R 0 Cost Acce. x Flight Resux lackboard.com/webapps/assessment/take/leunch,jsp?course assessment id 10871 18course_jd-14706 1&content; id 12% Wed 4:21 PM Jonat s Question Completion Status: QUESTION1 1.00000 points Thibodeaux Tailors has gathered information on utility costs for the past year. The controller has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company\'s utility costs: Low point High point 1,300 2, 680 s 903 ,074 If 1,425 hours are worked in a month, total utility cost (rounded to the nearest dollar) using the high-low method should be $947 $954 $959. $976. .00000 points QUESTION 2 Welch Corporation uses a predetermined overhead application rate of $.30 per direct labor hour.During

Solution

Variable Utility cost/hour=[Total cost at high point-Total cost at low point]/(High point-Low point)

which is equal to

=(1074-903)/(1680-1300)=$0.45

Fixed cost=1074-(0.45*1680)=$318

Hence total utlity cost at 1425 hours=$318+$(1425*0.45)

which is equal to

=$959(approx).