Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ex 6-25(algo) estimating cost behavior; high-low m

EX 6-25(Algo) Estimating Cost Behavior; High-Low Method (LO 6-1,6-2,6-5) Jonathan Macintosh is...

60.1K

Verified Solution

Question

Accounting

EX 6-25(Algo) Estimating Cost Behavior; High-Low Method (LO 6-1,6-2,6-5)
Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce production is relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-low method in estimating the companys energy cost behavior. The following costs were incurred during the past 12 months:
MonthPints of Applesauce ProducedEnergy CostJanuary36,800$ 25,200February22,80023,900March23,80023,800April25,80024,250May31,80024,700June33,80025,150July41,80029,800August31,80024,600September31,80024,800October29,80024,500November42,80025,900December40,80026,750
Required:
Use the high-low method to estimate the companys energy cost behavior and express it in equation form. Use the formula Y = a + bX, where Y denotes energy cost for a month and X denotes pints of applesauce produced.
Predict the energy cost for a month in which 44,000 pints of applesauce are produced.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Interpret what this Truth table tells you. What’s your claim regarding Elmo and Big Bird’s colors...

Advance Math
Q

what are some factors that a manufacturer should consider when determining whether to test a sample...

Advance Math
Q

TIVITE Homework The dimensions of a rec a the volume of water in b the...

Geometry
Q

et A 1 2 3 4 5 x 1 2 3 4 5 Let R...

Basic Math
Q

It was asked to find a 90 confidence interval fo n a random sample of...

Statistics
Q

Past experience is that when individuals are approached with a request to fill out and...

Statistics
Q

Antuan Company set the following standard costs per unit for its product. Direct materials (4.0...

Accounting
Q

1) Which of the following statements are correct (Select all that apply): Select one or...

Accounting
Q

Exercise 24-10 Vilas Company is considering a capital investment of $190,300 in additional productive facilities....

Accounting
Q

0.0100 UILC H IL DUR Varance. Lene Vanace a poliive Label the variance as favorable...

Accounting
Q

Find the NPV for the following project assuming a WACC of 16%. Make sure to...

Accounting
Q

At a level of 21,800 units sold, Gail Corp. has sales of $501,400, a contribution...

Accounting