7. What is the amount of the fixed cost element of inspection cost? $4,900 $4,930 $5,780 $11,050 None of the above 8. If the corporation expects that the number of units produced for October will be 910 units, what is the total expected inspection cost for October? * $4,900 $12,635 $15,470 $20,370 None of the above

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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7. What is the amount of the
fixed cost element of inspection
cost? *
$4,900
$4,930
$5,780
$11,050
None of the above
8. If the corporation expects
that the number of units
produced for October will be
910 units, what is the total
expected inspection cost for
October? *
O $4,900
$12,635
$15,470
O $20,370
None of the above
Transcribed Image Text:7. What is the amount of the fixed cost element of inspection cost? * $4,900 $4,930 $5,780 $11,050 None of the above 8. If the corporation expects that the number of units produced for October will be 910 units, what is the total expected inspection cost for October? * O $4,900 $12,635 $15,470 O $20,370 None of the above
The management of Gregory
Corporation believes that the
inspection cost is a mixed cost that
depends on units produced. The high-
low method is used to estimate the
variable and fixed components of this
cost. The total inspection costs at
Gregory's factory are listed below.
Month
Units Produced
Inspection Cost
January
990
$21,730
February
985
$21,645
March
807
$18,619
April
650
$15,950
May
760
$17,820
June
870
$19,690
July
8OS
S18,585
August
810
SI8,670
September
700
$16,800
Transcribed Image Text:The management of Gregory Corporation believes that the inspection cost is a mixed cost that depends on units produced. The high- low method is used to estimate the variable and fixed components of this cost. The total inspection costs at Gregory's factory are listed below. Month Units Produced Inspection Cost January 990 $21,730 February 985 $21,645 March 807 $18,619 April 650 $15,950 May 760 $17,820 June 870 $19,690 July 8OS S18,585 August 810 SI8,670 September 700 $16,800
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