The following information was available about supplies cost for the second quart
ID: 2378555 • Letter: T
Question
The following information was available about supplies cost for the second quarter of the 2011 year:
Month Production Volume Supplies Cost
June 1,000 $4,560
July 700 $3,185
August 1,600 $7,100
September 600 $2,700
a. Using the high-low method, what would be the variable cost per unit?
b.Using the high-low method, what would be the total fixed costs? _$_________
c. Using the high-low method, what would be the estimated cost of supplies at a volume of
1,000 units of production? _$____________
The following information was available about supplies cost for the second quarter of the 2011 year: Using the high-low method, what would be the variable cost per unit? Using the high-low method, what would be the total fixed costs? Using the high-low method, what would be the estimated cost of supplies at a volume of 1,000 units of production?Explanation / Answer
a.Find the high and low for your data and subtract the low from the high. Then divide the cost by the # of tickets to get the variable cost per unit.
The high looks like December and the low is August
Costs: 230,000 - 155,000 = 75,000
Tickets: 32,000 - 17,000 = 15,000
VC Per Unit: 75,000 / 15,000 = 5
b.Using the high-low method, what would be the total fixed costs? _$_____July 700 $3,185____
c.sing the high-low method, what would be the estimated cost of supplies at a volume of
1,000 units of production? _$__September 600 $2,700__________
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