Frenchy's Company needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows:
April - 4500 machine hours and $9,560 Utilities expense
May - 4200 machine hours and $9,440 Utilities expense
June - 6500 machine hours and $11,725 Utilities expense
July - 7000 machine hours and $11,400 Utilities expense
Frenchy's management anticipates producing 5,000 units in August. The company uses the high-low method to analyze costs. Using the high-low method, determine the expected costs for Utilities in August. B. Using the data calculated above, estimate the utilities cost for August.© BrainMass Inc. brainmass.com June 4, 2020, 3:15 am ad1c9bdddf
Highest level of activity=x2=7000
Total Utilities expanses associated with highest level of activity=y2=$11400
Lowest level of ...
Solution describes the steps to calculate expected utility cost by using High-Low method.