The phone bill for a company consists of both fixed and variable costs
Refer to the four-month data below and apply the high-low method to answer the question. (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)
Minutes Total Bill
January 460 $3,000
February 200 $2,675
March 180 $2,630
April 320 $2,840
What is the fixed portion of the total cost?
A) $607
B) $370
C) $2,393
D) $2,630
C .C) Variable cost per unit = Change in total cost / Change in volume of activity
Variable cost per unit = (Highest cost - Lowest cost) / (Highest volume - Lowest volume)
Change in total cost ($3,000 - $2,630 ) $370
Change in minutes (460 — 180 ) 280
Variable cost per minute ($370 / 280 ) $1.32
Variable cost for January = 460 minutes x $1.32 per minute = $607
Total fixed costs = Total mixed cost - Total variable cost
Total fixed costs = $3,000 - $607 = $2,393
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Carpenter and Sons' balance sheet on January 1, 2012, had total assets of $73,000, total liabilities of $20,000, paid-in capital of $30,000, and retained earnings of $23,000
During the month of January, Carpenter and Sons' recognized revenues of $73,000, cost of goods sold of $47,000, depreciation expense of $12,000, the payment of February and March's rent totaling $2,500, and salary expense of $8,000. The retained earnings balance at January 31, 2012, will be A) $29,000. B) $27,750. C) $31,000. D) $41,000. E) $26,500.
The auditor can be satisfied with less than persuasive evidence in the audit process because of the belief that management is honest
a. True b. False Indicate whether the statement is true or false