Need help answering ordan Miler& A/1118 6:35 PM Quiz Me: Quiz Me: 6.4 Use the hi

Question

Need help answering

ordan Miler& A/1118 6:35 PM Quiz Me: Quiz Me: 6.4 Use the high-low method to analyze cost behavior bmit Qu This Question: 1 pt 4 of 5 This Quiz: 5 pts possible Two Brothers Catering uses the high-low method to predict its total overhead costs. Past records show that total overhead cost was $25,000 when 850 hours were worked and $27,600 when 950 hours were worked Iif Two Brothers Catering has 875 hours scheduled for next month, what is the expected totail overhead cost for nexd month? Use the high-low method to determine the vanable and fixed costs components of Two Brothers Catering's operating cost equation First identify the formula and caliculate the variable cost component (slope) (Enter the variable cost per una to the nearest cent) e Variable cost per unit Next identify the formula and compute the fixed cost component (the vertical intercept) using the costs for the highest level of activity Totai foed costs Complete Two Brothers Caterings's operating cost equation If Two Brothers Catering has 875 hours scheduled next month, what is the expected total overhead cost? The lotal monthly operating costs if Two Brothers Catering wonks 8175 labor hours is $ Choose from any list or enter any number in the input fields and then continue to the next question Save for Later 535 P O Type here to search

Explanation / Answer

Variable cost per hour :

Calculate total fixed cost :

3) Cost formula :

4) Total cost on 875 hour = (875*26+2900) = 25650

Change in cost / Change in hour = variable cost per machine hour (27600-25000) / 100 = 26 per machine hour

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.