1) Determine the variable cost per unit and the fixed cost using the high-low method. 2) What is the equation of the total mixed cost function? 3) Based on the High-Low method, what is the total production costs if 6,500 units are produced? 4) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis. 5) Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.)
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
1) Determine the variable cost per unit and the fixed cost using the high-low method.
2) What is the equation of the total mixed cost function?
3) Based on the High-Low method, what is the total production costs if 6,500 units are
produced?
4) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2
cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.
5) Using the line of best-fit, determine the company’s fixed cost per month and the variable
cost per unit. (Use 0 & 5,000 units.)
Answer all please and thanks.
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