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  • Machine Hours and Utility Costs For Leviticus, Inc

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    The document shows machine hours and electricity costs for Leviticus, Inc. over 8 months. Machine hours ranged from 1,800 in November to 5,800 in June. Corresponding electricity costs ranged from ₱8,440 to ₱22,000. A line graph depicts the inverse relationship between monthly machine hours and costs. Tables 1 and 2 provide the raw data and calculations to determine the variable cost per machine hour is ₱3.50 using the high-low method.

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    The document shows machine hours and electricity costs for Leviticus, Inc. over 8 months. Machine hours ranged from 1,800 in November to 5,800 in June. Corresponding electricity costs ranged from ₱8,440 to ₱22,000. A line graph depicts the inverse relationship between monthly machine hours and costs. Tables 1 and 2 provide the raw data and calculations to determine the variable cost per machine hour is ₱3.50 using the high-low method.

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    240 views2 pages

    Machine Hours and Utility Costs For Leviticus, Inc

    Uploaded by

    arisu
    The document shows machine hours and electricity costs for Leviticus, Inc. over 8 months. Machine hours ranged from 1,800 in November to 5,800 in June. Corresponding electricity costs ranged from ₱8,440 to ₱22,000. A line graph depicts the inverse relationship between monthly machine hours and costs. Tables 1 and 2 provide the raw data and calculations to determine the variable cost per machine hour is ₱3.50 using the high-low method.

    Copyright:

    © All Rights Reserved
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    of 2

    Machine Hours and Utility Costs for Leviticus, Inc.

    Machine
    Month Electricity Costs
    Hours
    April 2,100 ₱9,750

    May 3,400 14,300

    June 5,800 21,640

    July 4,900 19,550

    August 2,500 11,150

    September 3,000 12,900

    October 2,400 10,800

    November 1,800 8,440

    December 4,800 22,000


    Table 1 . Machine hours and electricity costs for Leviticus, Inc.

    Machine Hours and Utility Costs for Leviticus, Inc.


    7,000 ₱25,000
    6,000
    ₱20,000
    5,000
    4,000 ₱15,000
    Machine Hours

    3,000 ₱10,000

    Costs
    2,000
    ₱5,000
    1,000
    0 ₱0
    ril ay ne Ju
    ly st be
    r er be
    r
    be
    r
    Ap M Ju ugu m tob m m
    A pt
    e Oc ve ce
    Se No De

    Months

    Machine Hours Electricity Costs

    Figure 1. Machine hours and electricity costs for Leviticus, Inc.

    Machine Hours and Utility Costs for Leviticus, Inc.


    Machine
    MONTH Electricity Costs
    Hours
    July 4,900 ₱19,550
    April 2,100 9,750
    Difference 2,800 9,800
    Variable Cost (VC) per unit ₱3.50
    Total variable cost at highest level 17,150
    Total variable cost at lowest level 7,350
    Fixed cost at highest level 2,400
    Fixed cost at lowest level 2,400
    Total costs at 2,900 machine hours ₱12,550
    Table 2. High-low method of machine hours and electricity costs for Leviticus, Inc.

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