Business, 06.07.2021 21:10 ijustneedhelp29

High-Low Method to Determine Fixed Cost and Variable Rate McGarvey Manufacturing Company had the following 12 months of data on purchasing cost and number of purchase orders.
Month Purchasing Cost Number of Purchase Orders
January $19,250 370
February 18,050 330
March 18,200 320
April 18,050 410
May 19,345 400
June 19,500 450
July 19,670 460
August 20,940 560
September 19,430 440
October 20,020 600
November 18,800 470
December 19,340 480
Required:
1. Determine the high point and the low point.
2. Calculate the variable rate for purchasing cost based on the number of purchase orders.
3. Calculate the fixed monthly cost of purchasing.
4. Write the cost formula for the purchasing activity showing the feed cost and the variable rate.
5. If McGarvey Manufacturing Company estimates that next month will have to purchase orders, what is the total estimated purchasing cost for that month?
6. What If McGarvey Manufacturing wants to estimate purchasing cost for the coming year and expects 6,000 purchase orders? What will estimated total purchasing cost be?
What is the total fixed purchasing cost?
Why doesn't it equal the fixed cost calculated in Requirement 3 above?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 23:30

Renaldo scanlon is a financial consultant. he earns $30 per hour and works 32.5 hours a week. what is his straight-time pay?

Answers: 1

Answer

Business, 22.06.2019 03:00

1) u.s. real gdp is substantially higher today than it was 60 years ago. what does this tell us, and what does it not tell us, about the well-being of u.s. residents? what are the limitations of the gdp as a measure of economic well-being? given the limitations, why is gdp usually regarded as the best single measure of a society’s economic well-being? 2) what is an intermediate good? how does an intermediate good differ from a final good? explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of gdp, but the value of intermediate goods produced and not sold is included directly as part of gdp.

Answers: 2

Answer

Business, 22.06.2019 05:50

Emily spent her summer vacation in buenos aires, argentina, where she got plastic surgery for a fraction of what it would cost in the united states. this is an example of:

Answers: 2

Answer

Business, 22.06.2019 06:40

As a finance manager at allsports communication, charlie worries about the firm's borrowing requirements for the upcoming year. he knows the benefit of estimating allsports' cash disbursements and short-term investment expectations. facing these concerns, a(n) would provide charlie with valuable information by providing a good estimation of whether the firm will need to do short-term borrowing. capital budget cash budget operating budget line item budget

Answers: 3

Answer

You know the right answer?

High-Low Method to Determine Fixed Cost and Variable Rate McGarvey Manufacturing Company had the fo...

Questions