EXERCISE 5-11 (20 MINUTES)

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
1.

Kilometers

Driven Total Annual

Cost*

High level of activity... 105,000 $11,970 Low level of activity... 70,000 9,380 Change ... 35,000 $ 2,590 * 105,000 kilometers × $0.114 per kilometer = $11,970