QUESTION 1 Not complete Points out of 1.00 PFlag question Relevant Range and Hig

Question

QUESTION 1 Not complete Points out of 1.00 PFlag question Relevant Range and High-Low Method The following selected data relate to the major cost categories experienced by Sterling Company at varying levels of operating volumes. Assuming that all operating volumes are within the relevant range, calculate the appropriate costs in each column in which blanks appear: Total Cost (@ 5,000 Units) Total Cost (@ 6,000 units) Variable Cost per Unit Total Fixed Cost Total Cost (@ 7,000 units) Direct labor (variable) 40,000 $48,000 Factory supervision (semi- variable) 20,000 22,000 Factory depreciation (fixed) 13,000 13,000 Check

Explanation / Answer

Total cost 5000 units Total cost 6000 units Variable cost per unit Total fixed cost Total cost 7000 units Direct labor 40000 48000 8 0 56000 Factory supervision 20000 22000 2 10000 24000 Factory depreciation 13000 13000 0 13000 13000

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