Figure 3-3. Okafor Company manufactures skis. The management accountant wants to
ID: 2346468 • Letter: F
Question
Figure 3-3.Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected.
Month
Lease cost
Machine hours
April
$ 21,000
550
May
16,500
420
June
19,000
510
July
22,230
570
See Figure 3-3: Using the high-low method calculate the fixed cost of leasing
Answer
$482
$516
$420
$456
3 points
Question 12
Figure 3-3.
Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected.
Month
Lease cost
Machine hours
April
$ 21,000
550
May
16,500
420
June
19,000
510
July
22,230
570
See Figure 3-3: What would Okafor Company
Explanation / Answer
Figure 3-3.
Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected.
Month
Lease cost
Machine hours
April
$ 21,000
550
May
16,500
420
June
19,000
510
July
22,230
570
=($22,230 - $16,500)/ (570 - 420) = $38.20
See Figure 3-3: Using the high-low method calculate the fixed cost of leasing
Answer
$482
$516
$420
$456
$456
$22,230 - ($38.20 x 570) =456
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.