The controller of Sunland Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. TotalElectricity Costs TotalMachine Hours January $2,490 250 February 3,000 320 March 3,530 460 April 4,740 695 May 3,160 450 June 4,900 790 July 4,130 625 August 3,890 590 September 5,170 680 October 4,220 610 November 3,290 320 December 6,410 810 Determine the fixed- and variable-cost components using the high-low method. Fixed-costs $ Variable-costs $ What electricity cost does the cost equation estimate for a level of activity of 460 machine hours? Electricity costs $ By what amount does this differ from March’s observed cost for 460 machine hours? Amount differ $ What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs $ By what amount does this differ from June’s observed cost for 790 machine hours? Amount differ $

The controller of Sunland Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total Machine Hours January $2,490...

The controller of Sunland Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs.

Determine the fixed- and variable-cost components using the high-low method.

Fixed-costs		$
Variable-costs		$

What electricity cost does the cost equation estimate for a level of activity of 460 machine hours?

Electricity costs

By what amount does this differ from March’s observed cost for 460 machine hours?

Amount differ

What electricity cost does the cost equation estimate for a level of activity of 790 machine hours?

Electricity costs

By what amount does this differ from June’s observed cost for 790 machine hours?

Amount differ

Jun 09, 2022