Questi 6. (TCO 9) Herbart Company gathered the following information on power costs and factory machine usage for the last six months: Power Cost Factory Machine Hours January $24,400 13,900 February...

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Questi6.
(TCO 9) Herbart Company gathered the following information on power costs and factory machine usage for the last six months:

	Power Cost	Factory Machine Hours
January	$24,400	13,900
February	30,300	17,600
March	29,000	16,800
April	22,340	13,200
May	19,900	11,600
June	14,900	6,600

Using the high-low method of analyzing costs, answer the following questions and show computations to support your answers.

Part (a) What is the estimated variable portion of power costs per factory machine hour?

Part (b) What is the estimated fixed power cost each month?

Part (c) If it is estimated that 10,000 factory machine hours will be run in July, what is the expected

total power cost for July?

Answered Same DayDec 24, 2021

Answer To: Questi 6. (TCO 9) Herbart Company gathered the following information on power costs and factory...

David answered on Dec 24 2021

127 Votes

SOLUTION:
(a) Variable power cost per factory machine hour:
$30,300 – $14,900 $15,400
————————— = ———— = $1.40 per factory machine hour
17,600 – 6,600 11,000

(b) Monthly fixed power cost:
High Low
(February) (June)
Total costs $30,300 $14,900
Less: Variable...

SOLUTION.PDF

Questi 6. (TCO 9) Herbart Company gathered the following information on power costs and factory machine usage for the last six months: Power Cost Factory Machine Hours January $24,400 13,900 February...

Answer To: Questi 6. (TCO 9) Herbart Company gathered the following information on power costs and factory...

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