E5-5 Estimating Cost Behavior Using High-Low Method [LO 5-3] Mountain Dental Ser

Question

E5-5 Estimating Cost Behavior Using High-Low Method [LO 5-3] Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Number of Cavities Filled 625 525 475 375 675 Total Cost $6,350 5,950 5,650 5,350 6,500 5,700 5,150 6,350 5,450 January February March May July August September 325 700 450 Required 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2 decimal places.) 0 Fixed Cost Variable Cost per Unit 2. Using these estimates, calculate Mountain's total cost for filling 550 cavities Estimated Total Cost

Explanation / Answer

1) no of total Cavities cost high 700 6,350 low -325 -5,150 difference 375 1,200 Variable cost per unit 1200/375 3.2 fixed cost = 6350 -700*3.2 4110 Fixed cost 4,110 Variable cost per unit 3.2 2) Estimated total cost 550*3.2 +4110 5870 answer

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.