Variable cost per unit = Change in cost ÷ Change in activity = $815 ÷ 92 machine-hours = $8.86 per machine-hour Fixed cost = Total cost - Variable cost element = $48,548 - ($8.86 per machine-hour × 3,157 machine-hours) = $48,548 - $27,971 = $20,577 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-05 Analyze a mixed cost using a scattergraph plot and the high-low method. 91. The following data pertains to activity and utility cost for two recent periods: Utility cost is a mixed cost with both fixed and variable components. Using the method, the cost formula for utility cost is: Variable cost per unit = Change in cost ÷ Change in activity = $1,500 ÷ 3,000 units = $0.50 per unit Fixed cost = Total cost - Variable cost element = $8,000 - ($0.50 per unit × 8,000 units) = $8,000 - $4,000 = $4,000 Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-05 Analyze a mixed cost using a scattergraph plot and the high-low method.
Variable cost per unit = Change in cost ÷ Change in activity = $815 ÷ 92 machine-hours = $8.86 per machine-hour Fixed cost = Total cost - Variable cost element = $48,548 - ($8.86 per machine-hour × 3,157 machine-hours) = $48,548 - $27,971 = $20,577 AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-05 Analyze a mixed cost using a scattergraph plot and the high-low method. 91. The following data pertains to activity and utility cost for two recent periods: Utility cost is a mixed cost with both fixed and variable components. Using the method, the cost formula for utility cost is: Variable cost per unit = Change in cost ÷ Change in activity = $1,500 ÷ 3,000 units = $0.50 per unit Fixed cost = Total cost - Variable cost element = $8,000 - ($0.50 per unit × 8,000 units) = $8,000 - $4,000 = $4,000 Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Blooms: Apply Difficulty: 1 Easy Learning Objective: 02-05 Analyze a mixed cost using a scattergraph plot and the high-low method.
Test%20Bank%20for%20Managerial%20Accounting%2015th%20Edition%20Garrison,%20Noreen,%20Brewer.docx