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TASK #2.2: COST BEHAVIOR High-Low (HL) Method Variable Fixed 73,623.26 Linear Regression (LR) Method Variable Fixed 73,623.26 Is there a difference between HL Method and LR Method? (Yes or No); Briefly explain No: graph is linear Accounts Classification Sales Revenue WA All Units Revenue COGS All Units Advertising Expense Sales Commissions Salaries Wages Expense Depreciation Expense Insurance Expense Rent Expense Utilities Expense Mixed Mixed Variable Mixed Fixed Step-Fixed Fixed Mixed 33,130 362 681 91,500 10,000 33,130 500 graph is linear Graph is linear graph is linear No: graph is linear Yes: step-fixed graph is linear No: graph is linear 681 110,510 240 900,000 2,000 2,000 2,000 TOTALS 45,943 PER WA UNIT 240,007 PER MONTH 45,592 PER WA UNIT 252,872 PER MONTH Which Method Should You Use? Use the linear regression results to derive the total equation for High-End Lifts, Inc. Follow this format: COST EQUATION TC = FC + (VC per unit x Weighted-Average # of Units) Leave WA# of units unknown variable: Directions: Complete this table by forwarding the amounts that are given on Task #2.1 for each line item, starting with advertising expense: The COGS line has been done for you example. TC = TC = FC per month + (VC per Units WA# of units leave blank Check D1Z 545,943 Check 617 5257,872 If the budgeted weighted-average of units sold in January of year 5 is 23 units, derive the budgeted total costs using the cost equation derived above TC = FC per month + (VC per Units WA# of units) Check C3O = 51,306,504.60

          TASK #2.2: COST BEHAVIOR

High-Low (HL) Method Variable Fixed 73,623.26
Linear Regression (LR) Method Variable Fixed 73,623.26
Is there a difference between HL Method and LR Method? (Yes or No); Briefly explain No: graph is linear
Accounts Classification Sales Revenue WA All Units Revenue
COGS All Units Advertising Expense Sales Commissions Salaries Wages Expense Depreciation Expense Insurance Expense Rent Expense Utilities Expense
Mixed Mixed Variable Mixed Fixed Step-Fixed Fixed Mixed
33,130 362 681
91,500 10,000
33,130
500
graph is linear Graph is linear graph is linear No: graph is linear Yes: step-fixed graph is linear No: graph is linear
681
110,510 240
900,000 2,000
2,000 2,000
TOTALS
45,943 PER WA UNIT
240,007 PER MONTH
45,592 PER WA UNIT
252,872 PER MONTH
Which Method Should You Use?
Use the linear regression results to derive the total equation for High-End Lifts, Inc. Follow this format: COST EQUATION TC = FC + (VC per unit x Weighted-Average # of Units) Leave WA# of units unknown variable:
Directions: Complete this table by forwarding the amounts that are given on Task #2.1 for each line item, starting with advertising expense: The COGS line has been done for you example.
TC = TC =
FC per month +
(VC per Units
WA# of units leave blank
Check D1Z 545,943 Check 617 5257,872
If the budgeted weighted-average of units sold in January of year 5 is 23 units, derive the budgeted total costs using the cost equation derived above TC = FC per month + (VC per Units WA# of units)
Check C3O = 51,306,504.60

task 22 cost behavior high low hl method variable fixed 7362326 linear regression lr method variable fixed 7362326 is there difference between hl method and lr method yes or nol briefly expl 38387

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