high low method machine hours
The companys relevant range of. Management believes that electrical cost is a mixed cost that depends on machine-hours.
Based on the following information calculate fixed costs per month using the high-low method.
. The high-low method involves taking the. In cost accounting a way of attempting to separate out fixed and variable costs given a limited amount of data. View high low methoddocx from BSMA 401 at STI College multiple campuses.
Let the new vivo Y31 re-introduce you to everything you love about. Machine Hours 22000 32000 26000 24000 Cost 56000 May June July August Oa. Up to 3 cash back High - Free download as Word Doc doc docx PDF File pdf Text File txt or read online for free.
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High Low Method of Machine Hours 8000 10000 11000 9000 14000 12000 Total Maintenance Costs 600000 640000 800000 700000 900000 870000 Required. Now the formula for high low method is calculated. Find the high and low points.
To illustrate the high-low method lets assume that a company had total costs of electricity of 18000 in the month when its highest activity was 120000 machine hours. High Low Method In Accounting Definition Formula It is shown below. Machine Hours 9000 3000 6000 Highest Lowest Difference Utility Cost 1960 880 1080 a.
Using the high-low method the estimate of the variable component of electrical cost per machine. August is not the high point because its number of. Period Semi-Variable Costs Machine Hours.
The high number of machine hours is in March and the low number of machine hours is in June. Hotlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost. Barkoff Enterprises which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost.
90000 110000 130000 150000 100000 120000 140000 160000 180000 200000 220000 240000 260000 280000 300000 Machine-Hours Maintenance Costs Solution.
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