A beverage company producing grape juices is about to apply High-Low method to estimate their energy cost behavior. The following costs were incurred in the past 12 months: Energy cost $70,200 $6,150...


A beverage company producing grape juices is about to apply High-Low method to estimate their energy<br>cost behavior. The following costs were incurred in the past 12 months:<br>Energy cost<br>$70,200<br>$6,150<br>Month<br>grape juice produced(pints)<br>January<br>February<br>105,000<br>61,600<br>March<br>66,000<br>$6,000<br>April<br>72,000<br>$67,350<br>May<br>90,000<br>$68,700<br>June<br>96,000<br>$70,050<br>July<br>120,000<br>$84,000<br>August<br>90,000<br>$68,400<br>September<br>90,000<br>$69,000<br>October<br>84,000<br>$68,100<br>November<br>127,000<br>$74,300<br>December<br>117,000<br>$74,850<br>

Extracted text: A beverage company producing grape juices is about to apply High-Low method to estimate their energy cost behavior. The following costs were incurred in the past 12 months: Energy cost $70,200 $6,150 Month grape juice produced(pints) January February 105,000 61,600 March 66,000 $6,000 April 72,000 $67,350 May 90,000 $68,700 June 96,000 $70,050 July 120,000 $84,000 August 90,000 $68,400 September 90,000 $69,000 October 84,000 $68,100 November 127,000 $74,300 December 117,000 $74,850
Refer to the following table showing the cost application bases used to distribute various costs<br>among the hospital's divisions:<br>Cost Pool:<br>Cost Allocation Base<br>Annual Cost<br>Facilities<br>Square feet of space<br>$395,000<br>$46,000<br>Utilities<br>Cubic feet of space<br>General Administration<br>Budgeted number of employees<br>$445,500<br>Community Outreach<br>Budgeted dollars of patient billings<br>$73,000<br>Below are the amounts of each cost allocation base associated with each division:<br>square feet cubic feet<br>Number of employees Patient Billings<br>$4,000,000<br>General Medicine<br>15,000<br>135,000<br>30<br>8,000<br>$2,500,000<br>Surgery<br>Medical support<br>100,000<br>20<br>9,000<br>90,000<br>20<br>$1,500,000<br>Administration<br>8,000<br>75,000<br>30<br>$0<br>Total:<br>40,000<br>400,000<br>100<br>$8,000,000<br>

Extracted text: Refer to the following table showing the cost application bases used to distribute various costs among the hospital's divisions: Cost Pool: Cost Allocation Base Annual Cost Facilities Square feet of space $395,000 $46,000 Utilities Cubic feet of space General Administration Budgeted number of employees $445,500 Community Outreach Budgeted dollars of patient billings $73,000 Below are the amounts of each cost allocation base associated with each division: square feet cubic feet Number of employees Patient Billings $4,000,000 General Medicine 15,000 135,000 30 8,000 $2,500,000 Surgery Medical support 100,000 20 9,000 90,000 20 $1,500,000 Administration 8,000 75,000 30 $0 Total: 40,000 400,000 100 $8,000,000

Jun 02, 2022
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