The following information is taken from Lab Works Canada testing Service: Month Number of Tests Performed Total Cost of Testing January 39,000 720,000 February 27,500 670,000 March 25,000 645,000 April 70,000 915,000 May 64,000 860,000 June 55,500 850,000 July 45,000 795,000 August 40,500 770,000 Required: Using the high-low method, determine the following: ALL CALCULATIONS MUST BE SHOWN 1. The variable cost per test. 2. The total fixed cost of operating the testing facility. 3. The expected cost for a month if 62,500 tests are performed. (This falls within the relevant range)
The following information is taken from Lab Works Canada testing Service: Month Number of Tests Performed Total Cost of Testing January 39,000 720,000 February 27,500 670,000 March 25,000 645,000 April 70,000 915,000 May 64,000 860,000 June 55,500 850,000 July 45,000 795,000 August 40,500 770,000 Required: Using the high-low method, determine the following: ALL CALCULATIONS MUST BE SHOWN 1. The variable cost per test. 2. The total fixed cost of operating the testing facility. 3. The expected cost for a month if 62,500 tests are performed. (This falls within the relevant range)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 27E: Using the Taguchi quality loss function, an average loss of 20 per unit is calculated. During the...
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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