TL Franklin Corporation Has Three Costs: A, Which Is Variable;

question 42

Essay

T.L. Franklin Corporation has three costs: A, which is variable; B, which is fixed; and C, which is semivariable. The company uses the high-low method and extracted the following data from its accounting records:
· At 180,000 hours of activity, Cost A totaled $2,610,000.
· At 140,000 hours, the low point during the period, Cost C totaled $1,498,000; at 200,000 hours, the high point, Cost C's fixed portion amounted to $1.75 per hour.
· At 160,000 hours of activity, the sum of Costs A, B, and C amounted to $8,162,000.
Required:
A. Compute the variable portion (total) of Cost C at 140,000 hours of activity.
B. Compute Cost C (total) at 160,000 hours of activity.
C. Compute Cost B (total) at 160,000 hours of activity.

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Definitions:

Indirect Perception Checking

A method of verifying the accuracy of one's interpretations of others' behaviors or statements without direct questioning.

Relationships

Connections or associations between two or more people, based on feelings, interactions, or commonalities.

Interpersonal Perception Process

The sequence of steps through which individuals make sense of the intentions, behaviors, and traits of others in social interactions.

Stages

refers to the distinct phases or periods that constitute a process of development or progression.