LIFESAVER! NO WORK HAS TO BE SHOWN! Wilson Company\'s activity for the first six
ID: 2435520 • Letter: L
Question
LIFESAVER! NO WORK HAS TO BE SHOWN!
Wilson Company's activity for the first six months of the current year is as follows:
Machine Hours Electrical Cost
January 4,400 $3,120
February 6,000 $4,460
March 4,800 $3,500
April 3,800 $3,040
May 3,600 $2,900
June 4,200 $3,200
Use the high-low method to identify the fixed and variable portions of the cost and determine the cost formula. Answer the following questions using the drop down:
- Select choice -$1,560$0.65Y = 560 + 0.65X$5606,000 HoursY = 1,534 + 0.65X3,600 Hours$3,810$1.542,400 Hours$1,534$2,900$4,460$3,6241,560 HoursY = 560 + 1.54XY = 1,534 + 1.54X
The activity in the "low" month.
- Select choice -$1,560$0.65Y = 560 + 0.65X$5606,000 HoursY = 1,534 + 0.65X3,600 Hours$3,810$1.542,400 Hours$1,534$2,900$4,460$3,6241,560 HoursY = 560 + 1.54XY = 1,534 + 1.54X
The total cost in the "high" month.
- Select choice -$1,560$0.65Y = 560 + 0.65X$5606,000 HoursY = 1,534 + 0.65X3,600 Hours$3,810$1.542,400 Hours$1,534$2,900$4,460$3,6241,560 HoursY = 560 + 1.54XY = 1,534 + 1.54X
The total cost in the "low" month.
- Select choice -$1,560$0.65Y = 560 + 0.65X$5606,000 HoursY = 1,534 + 0.65X3,600 Hours$3,810$1.542,400 Hours$1,534$2,900$4,460$3,6241,560 HoursY = 560 + 1.54XY = 1,534 + 1.54X
The variable cost per machine hour.
- Select choice -$1,560$0.65Y = 560 + 0.65X$5606,000 HoursY = 1,534 + 0.65X3,600 Hours$3,810$1.542,400 Hours$1,534$2,900$4,460$3,6241,560 HoursY = 560 + 1.54XY = 1,534 + 1.54X
The fixed cost per month.
- Select choice -$1,560$0.65Y = 560 + 0.65X$5606,000 HoursY = 1,534 + 0.65X3,600 Hours$3,810$1.542,400 Hours$1,534$2,900$4,460$3,6241,560 HoursY = 560 + 1.54XY = 1,534 + 1.54X
The cost formula.
- Select choice -$1,560$0.65Y = 560 + 0.65X$5606,000 HoursY = 1,534 + 0.65X3,600 Hours$3,810$1.542,400 Hours$1,534$2,900$4,460$3,6241,560 HoursY = 560 + 1.54XY = 1,534 + 1.54X
If the company used 5,000 machine hours next month, what would you expect the total cost to be for the month?
Explanation / Answer
a)6000 hours b)3600 hours c)$4460 d)$2900 e)0.65 f)$560 g)y=560+0.65*x if company uses 5000 machine hours by next month total cost=560+065*5000 = 560+3520 = $3810.
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