7,920 6,010 3,760 4,820 7.500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Need a&b plz
![A company has collected the following cost data for various levels of activity over the past eight months of operations:
Total Cost
Month
April
May
June
July
August
September
October
November
Units
7,920
6,010
3,760
4,820
7,500
8,460
7,330
6,940
a. Fixed Cost
a. Variable Cost
b. Total Cost
$ 29,425
27,101
17,717
24,130
Required:
a. Using the high-low method, calculate the variable cost per unit and the total fixed cost per month.
Note: Do not round your intermediate calculations. Round your variable cost answer to 2 decimal places and
fixed cost to the nearest whole dollar.
b. What would the total cost be for a month with 4,850 units produced?
Note: Do not round your intermediate calculations. Round your final answer to whole dollar.
25,980
26,130
26,132
26,212
per month
per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f861ae4-73ff-4661-bc40-30548561b517%2F6dcbe230-7599-4451-867e-f2db241766b3%2Fa4a4osd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company has collected the following cost data for various levels of activity over the past eight months of operations:
Total Cost
Month
April
May
June
July
August
September
October
November
Units
7,920
6,010
3,760
4,820
7,500
8,460
7,330
6,940
a. Fixed Cost
a. Variable Cost
b. Total Cost
$ 29,425
27,101
17,717
24,130
Required:
a. Using the high-low method, calculate the variable cost per unit and the total fixed cost per month.
Note: Do not round your intermediate calculations. Round your variable cost answer to 2 decimal places and
fixed cost to the nearest whole dollar.
b. What would the total cost be for a month with 4,850 units produced?
Note: Do not round your intermediate calculations. Round your final answer to whole dollar.
25,980
26,130
26,132
26,212
per month
per unit
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education