User Account

All Pages

Compute cost behaviour for the complex electricity costs

Assignment Help Managerial Accounting
Reference no: EM132529215

Brisbane Indoor Sports, a sporting complex, has opening hours that fluctuate from month to month. The electricity costs and hours of operation for past six months is listed below:

Month            Total hours of operation              Total electricity cost

January                     650                                  $ 4,240

February                   700                                       $ 4,400

March                          800                                     $ 4,800

April                              600                                    $ 4,200

May                               550                                   $ 3,700

June                                500                                 $ 3,600

Required:

Question 1: Use the high-low method to estimate the cost behaviour for the complex's electricity costs, assuming that the variable costs vary in proportion to the hours of operation. Express the total cost behaviour in formula form (Y = a + bx). What is the variable electricity cost per hour of operation?

Question 2: During July, the complex will open for 570 hours. Predict the complex's total electricity costs for July using the cost estimation method employed in above requirement a).

Question 3: What is the main drawback of the high-low method of cost estimation?

Reference no: EM132529215

Questions Cloud

Determine the value of beta : Determine the value of beta, for P = 0.4 note:Use four digits after the decimal point.
How many units do need to produce : how many units do they need to produce? If the company budgets to need 4000 units to sell for a month, has a beginning inventory of 1000 units
Provide general information for upper management : Create an Executive Summary for your report that can be used as the first page of the final product to provide general information for upper management
How much raw material was transferred to work in process : How much raw material was transferred to work in process on January 31? Raw materials inventory on January 1 is $100,000, raw materials purchased
Compute cost behaviour for the complex electricity costs : Use the high-low method to estimate the cost behaviour for the complex's electricity costs, assuming that the variable costs vary in proportion
Fee-for-service and prepaid health plan models : Compare and contrast the fee-for-service and prepaid health plan models. What is the best type of health insurance (for the consumer and organization) and why
Compute the book value of the drill press : Compute depreciation for 2018 and 2019 and the book value of the drill press at December 31, 2018 and 2019, assuming the double-declining-balance method is used
Create the schedule of cost of goods sold for nani fashions : Create the schedule of cost of goods sold for Nani's Fashions and explain the information provided by the schedule of cost of goods sold.
What is the journal entry to record the additional revenue : Your Company, which has fiscal year ending October 31, sells scented bars of soap for a 12% commission. What is journal entry to record the additional revenue

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd