Help! WileyPLUS Hl Help I Exercise 18-5 The controller of Haill Industries has c

Question

Help! WileyPLUS Hl Help I Exercise 18-5 The controller of Haill Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Total Hours 3,574 4,084 6,126 8,066 5,105 8,168 Total Month Maintenance Costs Machine February March April May $2,695 3,063 3,676 4,595 3,267 Determine the variable-cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour s TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE VIDEO APPLIED SKILLS Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Fixed costs LINK TO TEXT LINK TO TEXT VIDEOI SIMELAR EXERCESE VIDEO APPLIED SKILLS

Explanation / Answer

Cost amount Machine hours Highest cost 4717 8168 Lowest cost 2695 3574 Variable cost component = (Highest cost - lowest cost ) / (Highest machine hour - lowest machine hours) Variable cost component= (4717-2695)/(8168-3575) Variable cost component = 0.44 Per machine hour Fixed cost component = 4717 - .44*8168 = $1123

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