1. PE.21-01.ALGO (Algorithmic) High-Low Method The manufacturing costs of Ackerm
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Question
1. PE.21-01.ALGO (Algorithmic) High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced February 207,360 March January $243,760 1,800 units 900 2,700 322,560 gh-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit $ b. Total fixed cost 2. PE.21-02.ALGO (Algorithmic) Contribution Margin n 6 0ts at $26 ner unit, Variable costs are $15.34 per unit, and fixed costs are $226,400.Explanation / Answer
VC/unit=[Total cost at highest level-Total cost at lowest level)/(Highest level-Lowest level)
=(322560-207360)/(2700-900)=$64unit
Total fixed costs=322560-(64*2700)=$149760
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