Cardinal Cleaners Cardinal Cleaners documented the gallons of cleaning solvent i
ID: 2594797 • Letter: C
Question
Cardinal Cleaners Cardinal Cleaners documented the gallons of cleaning solvent it used as well as total overhead costs for the past five months as follows: Number of gallons 160 150 155 175 170 Total overhead costs 6,500 6,100 6,700 7,000 6,800 July August October November 58. Refer to the Cardinal Cleaners information above. Using the high/low method, what is the variable cost per unit? a. $25.00 b. $0.03 c. $900.00 d. $36.00 59. Refer to the Cardinal Cleaners information above. Using the high/low method, what is equation to predict total overhead costs? a. Y- $700 +$36x b. Y-$900+ $25x d. Y- $100+$40x 60. Refer to the Cardinal Cleaners information above. Cardinal uses the highlow method to predict total overhead costs. If Cardinal anticipates using 162 gallons of solvent in December, what are expected total overhead costs? a. $6,500 b. $6,532 c. $5,832 d. $700Explanation / Answer
No of total 58) gallons OH costs high 175 7000 low -150 -6,100 Difference 25 900 variable cost per unit =900/25 36 per gallon option D is the correct answer 59) Fixed overhead = 7000 - 175*36 700 option a is the correct answer Y = $700 + $36X 60) total overhead costs Y = $700 +$36 X where y is total cost Fixed cost is $700 and X is variable so total cost = $700 + 36*162 6532 option B is the correct answer