7,920 6,010 3,760 4,820 7.500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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
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