CH5&CH6 - EXERCISE 5-7 Cost Behavior; High-Low Method...

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EXERCISE 5-7 Cost Behavior; High-Low Method 1. 105,000 $0.114 $11,970.00 70,000 $0.134 $9,380.00 35,000 $0.074 $2,590.00 at 105,000 km $7,770.00 =105000*0.074 $4,200.00 =11970-(0.074*105000) Total Costs $11,970.00 2. Y=a+bX Y=$4200+$0.074X 3. 80,000 $0.074 $5,920.00 Kilometer Devices Avg Operating Cost per km Total Annual Cost High level of activity Low level of activity Variable Cost VC Fixed Cost FC
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EXERCISE 5-7 Cost Behavior; High-Low Method 1. Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . Variable Advertinsing expense . . . . . . . . . . . . . . . . . . . . . . . . Fixed Shipping expense . . . . . . . . . . . . . . . . . . . . . . . . Mixed Salaries and commissions . . . . . . . . . . . . . . . . . . . . . . . . Mixed Insurance expense . . . . . . . . . . . . . . . . . . . . . . . . Fixed Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . Fixed 2. Units
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CH5&CH6 - EXERCISE 5-7 Cost Behavior; High-Low Method...

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