Given the following cost and activity observations for Smithson Companys

Given the following cost and activity observations

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17. Given the following cost and activity observations for Smithson Company’s utilities, use the high-lowmethod to calculate Smithson’s fixed costs per month. Do not round your intermediate calculations.CostMachine HoursJanuary$52,20020,000February75,00029,000March57,00022,000April64,00024,500 18. Given the following cost and activity observations for George Company’s utilities, use the high-low method to calculate George’s variable utilities costs per machine hour.CostMachine HoursMay$16,500105,000June18,000120,000July16,000100,000
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19. Manley Co. manufactures office furniture. During the most productive month of the year, 4,500 desks were manufactured at a total cost of $86,625. In its slowest month, the company made 1,800 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are 20. Which of the following statements is true regarding fixed and variable costs? 21. As production increases, the fixed cost per unit 22. Understanding how costs behave is useful to management for all the following reasons except 23. The manufacturing cost of Calico Industries for three months of the year are provided below:Total CostProduction(units)April$120,000280,000May74,000165,000June90,900230,000Using the high-low method, the variable cost per unit and the total fixed costs are 24. As production increases, variable costs per unit 25. Thompson Company manufactures and sells cookware. Because of current trends, it expects to increase sales by 15% next year. If this expected level of production and sales occurs and plant expansion is not needed, how should this increase affect next year’s total amounts for the following costs. Variable CostsFixed CostsMixed Costsb.increase no change increase 26. Given the following costs and activities for Dance Company electrical costs, use the high-low method to calculate Dance’s variable electrical costs per machine hour.CostsMachine HoursAug.$11,70015,000
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27. Given the following cost data, what type of cost is shown? 28. Given the following cost data, what type of cost is shown?Total CostNumber of Units$8,0001$8,5002$9,0003$9,500 30. Given the following cost data, what type of cost is shown?Total CostNumber of units$201$402$603$80
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