Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1.200 machine hours, with the following data being avalable for the first six months of the year: Month Utilities Machine Hours January 9,600 890 February 9.260 810 March 9,850 900 April 10.260 1010 May 10,732 1,040 June 10,050 990 The fixed utilities cost per month for Barkoff is: Multiole Choice • 55,440. • $4,076. • $4,436. • 54,776. • None of the answers is correct
Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1.200 machine hours, with the following data being avalable for the first six months of the year: Month Utilities Machine Hours January 9,600 890 February 9.260 810 March 9,850 900 April 10.260 1010 May 10,732 1,040 June 10,050 990 The fixed utilities cost per month for Barkoff is: Multiole Choice • 55,440. • $4,076. • $4,436. • 54,776. • None of the answers is correct
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...
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