Log in
Accounting
1
answer
0
watching
262
views

T/F: A major advantage of the high-low method of cost estimation is that it omits all data from the analysis other than the lowest and highest costs.

Watch
1
answer
0
watching
262
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Jamar Ferry
Jamar FerryLv2
29 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Expo calculates cost estimates for producing its standard chiseltip low odor dry erase markers based on cost information from 2015in which they produced between 1 million and 8 million dry easemarkers each month. Which estimation method would be mostappropriate and for which amount would it be reliable?

a. Industrial engineering estimates; 4 million

b. Account analysis; 9 million

c. regression; 9 million

d. High-Low; 4 million

The following data relate to the Lisle Company for May andAugust of the current year:



May and August were the lowest and highest activity levels, andLisle uses the high-low method to analyze cost behavior. Which ofthe following statements is true?

The fixed maintenance cost is $725,000 per month.

The variable maintenance cost is $43 per hour.

The variable maintenance cost is $47 per hour.

More than one of the other answers is true.

The variable maintenance cost is $45 per hour.

Murphy Corporation has the following data pertaining to certaincosts that cannot be easily identified as either fixed or variable.Murphy Corporation has decided to use a method of measuring costfunctions called the high-low method in this situation.

Month Cost Hours
January $37,000 3,550
February 24,400 2,000
March 36,280 2,540
April 41,400 3,110
May 44,160 3,900
June 40,240 3,840


What would be the cost estimation equation, using Y for total costsand X for hours?

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in