Purchase Solution

Millard Airport: High Low method - variable cost, fixed cost

Not what you're looking for?

Ask Custom Question

Problem 3 Show work in Excel

Millard Airport handles many private flights. The budget officer has compiled the following data regarding airport costs over the past year.

Month Airport costs Flights originating at the airport
January $22,000 1,200
February 19,000 1,000
March 18,000 900
April 19,000 1,150
May 16,500 800
June 20,000 1,100
July 21,000 1,500
August 17,000 800
September 21,000 1,200
October 19,000 1,000
November 24,000 1,400
December 18,000 1,100

1. Determine the variable cost per receiving order using the High-Low method.
2. Determine the fixed cost using the High-Low method.
3. Give the cost equation using the High-Low method to estimate the airport costs.
4. Estimate the airport costs using the High-Low method if the company expects 1,350 flights.

Purchase this Solution
Solution Summary

The solution computes variable cost, fixed cost by High-low method for Millard Airport.

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Operations Management

This quiz tests a student's knowledge about Operations Management

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

View More Free Quizzes
Related BrainMass Solutions

  • Estimating A Cost Function Using The High-Low Method

    122638 Estimating A Cost Function Using The High-Low Method Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City.

  • Using regression for high-low method of variable costing

    249352 Using regression for high-low method of variable costing Question 7: (10 points) Exercise 5-5 (Appendix 5A) Least-Squares Regression [LO5] EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida

  • Accounting: Costs and Income Statements

    (b) The high-low method is accurate only in those situations where the variable cost is truly constant, or where the high and the low points happen to fall on the correct regression line.

  • Fixed and variable costs with the Scattergraph method

    Fixed cost Variable cost Estimated cost Scatter graph method $145.36 $0.87 $883.08 High-low method $128.57 $0.86 $857.14 The fixed and variable costs with the scattergraph methods are examined.

  • High-low method

    Using the high-low method, compute the variable cost element. b. Using the high-low method, compute the fixed cost element (to the nearest whole dollar).

  • Computing the variable and fixed cost elements using the high-load method

    One of these is the high-low method which can be stated by this equation: Variable cost per unit = (High cost - Low cost)/(High production - Low production) High: August 10,000 units at $14,940 Low: October 7,100 units at $11,200 Variable cost per

  • Accounting-Cost Concept Problem.

    Using the high/ low two-point method, determine the variable cost per customer.

  • Cost Behviour, High-Low Method

    to calculate the fixed and variable cost using the high low method

  • High-Low Method

    In the high low method we take the highest and the lowest values Variable cost = Change in cost/change in activity Fixed cost = Total cost - total variable cost Here High $20,500 copies 900,000 Low $8,500 copies 300,000 Variable cost per copy =

View More Related Solutions