Lichtenstein Imports Needs to Determine the Variable Utilities Rate Per

question 5

Essay

Lichtenstein Imports needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows.

Lichtenstein anticipates producing 5,000 units in August, each unit requiring 1.5 hours of machine time. The company uses the high-low method to analyze costs.
Required:
A. Calculate the variable and fixed components of the utilities cost.
B. Using the data calculated above, estimate the utilities cost for August.
C. Compare the high-low method versus the visual-fit method with respect to (1) number of data observations used in the analysis and (2) objectivity of the results.

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A principle suggesting that in a social relationship, the person who cares the least has the most power.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

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A preconceived opinion or bias against an individual or group without sufficient information, often leading to discrimination and social injustice.

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