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katovenus [111]
1 year ago
9

The Morrow Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed

or variable. Morrow Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Month Cost Hours January $40,000 3,730 February $37,600 3,200 March $42,800 3,480 April $50,200 5,000 May $68,400 6,000 June $61,200 4,250 What is the estimated total cost at an operating level of 3,400 hours
Business
1 answer:
Iteru [2.4K]1 year ago
3 0

Answer:

$39,800

Explanation:

From the question above Morrow company has decided to use the measuring cost function method to find its total cost

- $68,400 is the highest cost and $37,600 is the lowest cost

- 6,000 is the highest number of hours and 3,200 is the lowest

The first step is to calculate the cost driver. Let's use the alphabet c to represent the cost driver

(68,400-37,600) / (6,000-3,200)

c = 30,800/2,800

c= $11

Cost driver= $11

The next step is to find the fixed cost. Let's use the alphabet f to represent the fixed cost

68,400= f + ( 11×6000)

68,400= f + 66,000

f= 68,400-66,000

f= $2,400

Fixed cost= $2,400

The final step is to calculate the cost function

Cost function= fixed costs+variable costs×number of units

Fixed cost= $2,400

Variable cost= $11

Number of units= 3,400 hours

= 2,400+(11×3,400)

= 2,400+ 37,400

= $39,800

Hence the total cost at an operating level of 3,400 hours is $39,800

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mixer [17]

Answer and Explanation:

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The journal entry is shown below:

For transaction 3

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(Being the rent expense is paid for cash is recorded)

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(Being the energy usage is paid for cash is recorded)

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For transaction 8

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(Being the advertising expense is recorded)

As the expense has debit balance so it would be increased

For transaction 4

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As the revenue has credit balance so it would be increased

For transaction 5

Cash Dr

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As the revenue has credit balance so it would be increased

The attachment is provided for better understanding  

The other transactions represent the assets, liabilities and stockholder equity

8 0
1 year ago
You saved $500 in currency in your piggy bank to purchase a new laptop. The $500 you kept in your piggy bank illustrates money’s
otez555 [7]

Answer:

The answer to the three fill in the banks as per order given in question are- store of value , unit of account , medium of exchange.

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When $500 are kept in piggy bank to buy laptop, it illustrates the store of value function of money. This is a function where money is kept or stored to purchase some item in the future, given money doesn't lose its purchasing power .

The $500 price of laptop shows the unit of account function of money , where money is the standard numerical of measurement for the goods and services or any other transaction in the market.

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Answer:

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La demanda por desinfectante aumenta, mientras que la oferta también aumenta pero no al mismo ritmo, ya que las empresas deben ajustar su producción y esto toma tiempo. Esto ocasiona que la cantidad de equilibrio sea menor a la demandada, lo que incrementa el precio del desinfectante.

La curva de demanda se mueve a la derecha (aumenta), mientras que la curva de oferta se mantiene.

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La oferta de frutas disminuye de forma drástica, al tiempo que la demanda aumenta. Esta baja cantidad y alta demanda ocasiona un gran aumento del precio de las frutas.

La curva de oferta se mueve a la izquierda (disminuye), mientras que la curva de demanda se mueve a la derecha (aumenta).

Los costos asociados al consumo de energía eléctrica en el proceso de producción se han reducido considerablemente, en conjunto con la entrada al mercado de 10 nuevas empresas dedicadas a la producción de alimentos.

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3 0
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a_sh-v [17]

Answer:

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Answer:

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