high low method machine hours

247 help from Expert Tutors on 140 subjects. High-Low method is one of the several mathematical techniques used in managerial accounting to split a mixed cost into its fixed and variable components.

High Low Method Definition

This preview shows page 21 - 25 out of 55 pages.

. The organization increments salaries and wages by 10 at the start of the 3rd. Your solution should show the appropriate formulas and the detailed calculations. High low method machine hours Saturday March 5 2022 Edit.

Machine Hours Electrical Cost January 4000 3120 February 6000 4460 March 4800 3500 April 5800 5040 May 3600 2900 June 4200 3200 Required. High Low Method of Machine Hours 8000 10000 11000 9000 14000 12000 Total Maintenance Costs 600000 640000 800000 700000 900000 870000 Required. Units labor hours machine hours etc and the corresponding total cost figures high-low method only takes two extreme data pairs ie.

In cost accounting a way of attempting to separate out fixed and variable costs given a limited amount of data. Course Title ACC 211. The total maintenance cost at 25000 machine hours is given as.

High Low Method In Accounting Definition Formula. The cost of electricity used in a factory is likely to be a mixed cost since some of the electricity will vary with the number of machine hours while some of. The organization increments salaries and wages by 10 at the start of the 3rd.

Company which uses the high-low method to analyze cost behavior has determined that machine hours best predict the companys total utilities cost. 6 points Atlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost. This method can be used advantageously.

The companys cost and machine hour usage data for the first six months of the year follow. State the cost function 4. A manufacturing company estimates semi-variable costs by using the high-low method with machine hours as the cost driver.

Quarter Work hours Cost 1 15000 4000000 2 20000 4800000 3 18000 4400000 4 21000 5000000. Given a set of data pairs of activity levels ie. Barkoff Enterprises which uses the high-low method to analyze cost behavior has determined that machine hours best explain the.

High low method 1 machine hours maintenance costs. Machine hours and electricity costs for IJMAC Industries for 2013 were as follows. Assume that the cost of electricity at a small manufacturing facility is a mixed cost since the company has only one electricity meter for air quality cooling lighting and for its production equipment.

11000 76000 58000 66000. The companys relevant range of activity varies from a low of 600 machine hours to a high of 1100 machine hours with the following data being available for the first six months of. Quarter Work hours Cost 1 15000 4000000 2 20000 4800000 3 18000 4400000 4 21000 5000000.

The Cost function will be. The company wants to know the rate at which its electricity cost changes when the number of machine hours change. These are then used to.

Using the high-low method develop an estimate of fixed electricity costs per month. Use High and low method to estimate Variable cost per unit 2. Recent data are shown below.

The high-low method involves taking the highest level of activity. Transfer the information in the table above to an Excel spreadsheet and prepare the solutions to the following questions. Atlanta Inc which uses the high-low method to analyze cost behavior has determined that machine hours best explain the companys utilities cost.

Mixed costs are costs that are partially variable and partially fixed. Using the high-low method of analysis estimate the variable electrical cost per machine hour. Machine-hours Labor Costs Highest observation of cost driver 400.

Solve Y if x 13000 machine hours. High Low Method is a mathematical technique used to determine the fixed and variable elements of historical costs that are partially fixed and partially variable. Factory overheadMachine hours.

If factory overhead is Rs 3 00000 and total machine hours are 1500 the machine hour rate is Rs 200 per machine hour Rs 3 00000 1500 hours. School The University of Queensland. 978-0-07-802542-6 PROBLEM 2-21 PAGE 60 PROBLEM 2â 21 High-Low Method.

Solve Y if x 13000 machine hours. Machine Hours 22000 32000 26000 24000 Cost 56000 May June July August Oa. The cost function shows a positive economically plausible relationship between machine-hours and maintenance costs.

The companys relevant range of activity varies from a low of 600 machine hours to a high of 1100 machine hours with the following data being available for the first six months of the year. Example of High-Low Method. The high-low method is a simple technique for computing the variable cost rate and the total amount of fixed costs that are part of mixed costs.

Total costsfixed costsvariable cost. Find the fixed cost 3. Part 1 High-Low Method 12 Points.

Pages 55 Ratings 100 3 3 out of 3 people found this document helpful. The companys relevant range of activity varies from a low of 600 machine hours to a high of 1100 machine hours with the following data being available for the first six months of the. High Low Method Accounting Meaning Formula Example And More In 2021 Accounting Accounting Principles Accounting Education.

Atlanta Inc which uses the high-low method to analyze cost. Labor hours machine hours etc and the corresponding total cost figures high-low method only takes two extreme data pairs as inputs. The high-low method comprises the highest and the lowest level of activity and comparison of the.

Using the high-low method answer the following questions. Based on the following information calculate fixed costs per month using the high-low method. 11000 76000 58000 66000.

90000 110000 130000 150000 100000 120000 140000 160000 180000 200000 220000 240000 260000 280000 300000 Machine-Hours Maintenance Costs Solution Exhibit 10-30 presents the high-low line. Based on the following information calculate fixed costs per month using the high-low method. Use High and low.

High Low Method Calculator