WileyPLUS x Chegg Study Guided So x CSecure httpsedugenwile

WileyPLUS x Chegg Study | Guided So x CSecure https://edugen.wileyplus.com/edugen/lti/main.uni Assignment > Open Assignment CALCULATOR PRINTER VERSION RACK NFXT ASSIGNMENT RESOURCES Exercise 18-5 The controller of Hall Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Maintenance Costs Total Machine Hours Question 11 Question 12 Month January February March April May 52,735 3,108 3,730 4,662 3,315 4,786 3,626 4,144 6,216 8,184 5,180 8,288 Brief Fxercise185 Boef Exercise-6 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Varlable cost per machine hour 18-1 LINK TO TEXT LINK TO TEXI VIDEO: SIMILAR EXERCISE VIDEOt APPLIED SKILLS Do it! Review 18-1 Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Fixed costs Fxercise 18-4 xercise 18-: Click if you would like to Show Work for this question: Open Show Work All Rights Reserved, A Division of Version 4.24.6.2 2:50 PM 6/11/2018 2

Solution

1. variable cost per machine hour =$0.44 per machine hour

2.fixed costs = $1140.

working:

variable portion = (highest maintenance cost - lowest maintenance cost ) / (highest machine hour - lowest machine hour)

=> (4,786 - 2,735) / (8288-3626)

=>2051/4662

=>$0.44per machine hour.

now,

fixed portion

consider january

[3,626 hours * $0.44 per hour ] + fixed cost = $2,735

=>1595.44 + fixed cost = 2735

=>fixed cost = 1140.