Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the local utility company charges abc company at a

The local utility company charges ABC Company at a mixed cost utility rate: an annual...

70.2K

Verified Solution

Question

Accounting

The local utility company charges ABC Company at a mixed cost utility rate: an annual fee plus a variable cost for each kilowatt of power the company uses. Utility usage and costs are as follows: Kilowatts 187,976 219,764 196,644 143,987 156,983 115,300 156,392 125,982 151,999 170,637 294,000 184,763 Utility Costs $135,500 170,000 160,000 114,000 128,000 89,000 108,000 98,000 88,000 140,000 165,000 144,000
image
image
image
The local utility company charges ABC Company at a mixed cost utility rate: an annual fee plus a variable cost for each kilowatt of power the company uses. Utility usage and costs are as follows: 2 a. Use the high-low method to determine the cost flow equation for ABC s utility costs. Show your work. b. It takes approximately 8,000 kilowatt hours of electricity for ABC company to make one unit of product. ABC expects to make 25 units of product in 2014. Using the high low method, predict the total utility costs at the projected level of usage for 2014. Show your work (show the total cost equation)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

1. You have taken out a loan of $300 000 at an interest rate of 3%...

Finance
1.2K views

Aasir can invest his money in risk-free asset and/or in a fund F. The risk-free asset...

Advance Math
1.2K views

Is rational number divided by an irrational number equal to irrational number or rational number? for...

Statistics
1.2K views

The price of a home is 270 000 The bank requires a 5 down payment...

Calculus
1.2K views

A differential equation a point and a slope field are given A slope field or...

Algebra
1.2K views

Fill in the blank with the correct answer that completes the following sentence.on a matrix...

Accounting
1.2K views

of this point in time (year to date), the overhead is a. $434,000 underapplied b....

Accounting
1.2K views

Yuvwell Corporation's direct labor budget for next year contained the following information: The company uses...

Accounting
1.2K views

Do you believe it is possible for a company to perpetrate a fraud that is...

Accounting
1.2K views

Camden Biotechnology began operations in September 2021. The following selected transactions relate to liabilities of...

Accounting
1.2K views

What are the pros and cons of having a service guarantee

Accounting
1.2K views

what is a collection of values that are of the same type