WebOct 22, 2012 · This video explains the high-low method for calculating the fixed and variable components of a mixed cost. I run through an example and use the cost formula for … WebMixed Cost Formula = $ 100,000 + $ 10* 50,000 y= $ 100,000+ $ 500,000 y= $ 600,000 Advantages It is crucial and necessary for any business enterprise to have the proper …
Question: Compute the fixed cost elements using the high-low …
WebSterling Glass Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year. Month Cost Hours January $ 4,515 300 February $ 4,825 400 March $ 5,540 550 April $ 4,485 200 May $ 5,685 800 June $ 5,230 500 How should the cost function be properly stated? WebNov 15, 2014 · This video explains how to use the High-Low Method to estimate the fixed and variable components of a mixed cost in accounting. An example is provided to de... examples for primary source
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WebThree methods for separating mixed costs into the fixed portion and the variable portion are: Preparing a scattergraph. Using the high-low method. Using regression analysis. It is … The formula for developing a cost model using the high-low method is as follows: Once the variable cost per unit is determined: Fixed cost = Highest activity cost – (Variable cost per unit x Highest activity units) or Fixed cost = Lowest activity cost – (Variable cost per unit x Lowest activity units) The resulting cost … See more The manager of a hotel would like to develop a cost model to predict the future costs of running the hotel. Unfortunately, the only available data is the level of activity (number of … See more The high-low method is an easy way to segregate fixed and variable costs. By only requiring two data values and some algebra, cost … See more Thank you for reading CFI’s guide to High-Low Method. To keep advancing your career, the additional CFI resources below will be useful: 1. Cost Behavior Analysis 2. Cost Method 3. … See more Due to the simplicity of using the high-low method to gain insight into the cost-activity relationship, it does not consider small details such as … See more WebThe total cost of producing 1,400 mailboxes is $32,802. 2. The variable cost per unit is $9.00. 3. y = $9.00 x + $20,202 4. The total cost is $35,145 5. The total cost is $33,702 6. … brushed heart clipart