Jones Oil and Lube is a car care center specializing in ten-minute oil changes. Jones Oiland Lube has two service bays, which limits its capacity to 3,400 oil changes per month.The following information was collected over the past six months:MonthNumber of Oil ChangesOperating ExpensesJanuary .3,200$36,400February .2,600$31,900March2,800$32,850April.2,700$32,500May..3,600$37,000June....2,900$33,700 S6-9 Use the high-low method (Learning Objective 4)Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rentalfee and a per-copy charge. If the company makes 8,000 copies per month, the over-all per-copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it isestimated that the cost per copy is $0.19.1. Using the high-low method, estimate the variable rate per copy and the annualrental fee.2. If 9,000 copies were made in a month, compute the total cost.

Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity units -…

Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rental fee and a per-copy charge. If the company makes 8,000 copies per month, the over- all per-copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it is estimated that the cost per copy is $0.19. 1. Using the high-low method, estimate the variable rate per copy and the annual rental fee. 2. If 9,000 copies were made in a month, compute the total cost.

Sun Inn Hotel rents a photocopy machine. The company is charged a fixed annual rental fee and a per-copy charge. If the company makes 8,000 copies per month, the over- all per-copy cost is estimated to be $0.16. If 6,000 copies are made in a month, it is estimated that the cost per copy is $0.19. 1. Using the high-low method, estimate the variable rate per copy and the annual rental fee. 2. If 9,000 copies were made in a month, compute the total cost.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 1CE

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