Vincente Corporation Has a Machining Capacity of 200,000 Hours Per

question 86

Essay

Vincente Corporation has a machining capacity of 200,000 hours per year. Utilization of capacity is normally 75%; it has been as low as 40% and as high as 90%. An analysis of the accounting records revealed the following selected costs:
Vincente uses the high-low method to analyze cost behavior.
Required:
A. Classify each of the costs as being either variable, fixed, or semivariable.
B. Calculate amounts for the two unknowns in the preceding table.
C.
C. Calculate the total amount that Viscount would expect at a 75% utilization rate for Cost A, Cost B, and Cost
D. Develop an equation that Vincente can use to predict total cost for any level of hours within its range of operation.

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Definitions:

Double Covalent Bonds

Chemical bonds where two pairs of electrons are shared between atoms, resulting in a stronger and more stable bond than a single covalent bond.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, typically found in sugars, starches, and cellulose, serving as a major energy source in the diet of animals.

Starches

Complex carbohydrates that are composed of many glucose units joined together, found in foods like potatoes, rice, and wheat.

Energy Nutrients

Nutrients such as carbohydrates, fats, and proteins that provide energy for the body to perform its functions.