Purchase Solution

Use the high-low method to develop a monthly cost formula

Not what you're looking for?

Ask Custom Question

When Jerome Company's monthly costs were $75,000, sales were $80,000; when its monthly costs were $60,000, sales were $50,000. Use the high-low method to develop a monthly cost formula for Jerome's coming year.

Purchase this Solution
Solution Summary

The expert uses the high-low method to develop a monthly cost formula.

Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Analyzing costs into variable and fixed elements.

    The high-low method, for separating costs, is explained and its formula provided. Also, the steps, for using the method to forecast costs are explained. Thank you.

  • Cost Formula Using the High Low Method

    This solution illustrates how to determine the cost formula for overhead using the High-Low Method and how to apply that cost formula to find the overhead at a given production level.

  • High low method

    238287 High low method problem The Ponder Manufacturing Company wants to develop a cost estimating equation for its monthly cost of electricity.

  • MA 14-34. Cost Estimation, Interpretation, and Analysis

    Presented is monthly information on production volume and manufacturing costs: Please see Ms Excel attachment Required: a. Use the high-low method to develop a cost-estimating equation for total manufacturing costs.

  • Costing/Cost Function - Variable, Fixed & Mixed Cost

    Which of the preceding costs is variable? Fixed? Mixed? Explain. b. Using the high-low method, determine the cost function for each cost. c. Combine the preceding information to get a monthly utility cost function for Jersey.

  • Developing a cost function by High-Low method

    552698 Develop the cost function by High-Low method.

  • High-Low method of Cost estimation

    Use the high-low method to estimate the variable cost er tour miles traveled and fixed cost per month. 2. Develop a formula to express the cost behavior exhibited by the compny's maintenance cost. 3.

  • Use high-low method to estimate the overhead cost behavior

    Use the high-low estimation method to estimate the overhead cost behavior (fixed and variable portions components of cost) for the Lucas plant. B. Prepare a scattergraph showing the overhead costs plotted against the labor-hours. C.

  • Ramon Company - cost formula to estimate the fixed variable

    Lease expense is a major element of overhead cost. Required: 1. Using the high- low method, estimate a manufacturing overhead cost formula. 2. Prepare a scattergraph using all of the data for the two- year period.

View More Related Solutions