Alden Company's monthly data for the past year follow. Management and fixed costs. Month 1 2 3 4 5 6 7 8 9 10 11 12 Units Sold 315,000 160,000 260,000 200,000 285,000 185,000 365,000 265,000 77,000 145,000 89,000 95,000 Total Cost $ 152,500 96,250 200,600 95,000 196,500 107,000 314,800 146,750 70,000 125,625 89,000 86,650 2. Predict future total costs when sales volume is (a) 370,000 units and (b) 410,000 units. 370,000 units 410,000 units

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter5: Activity-based Costing And Management
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Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...
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Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable
and fixed costs.
Month
1
2
Saw!
3
4
5
6
7
8
9
10
11
12
Units Sold
315,000
160,000
260,000
200,000
Total cost
285,000
185,000
365,000
265,000
77,000
145,000
89,000
95,000
Total Cost:
$152,500.
96,250
200,600
95,000
196,500
107,000
314,800
146,750
70,000
125,625
89,000
86,650
2. Predict future total costs when sales volume is (a) 370,000 units and (b) 410,000 units.
370,000 units 410,000 units
Transcribed Image Text:Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month 1 2 Saw! 3 4 5 6 7 8 9 10 11 12 Units Sold 315,000 160,000 260,000 200,000 Total cost 285,000 185,000 365,000 265,000 77,000 145,000 89,000 95,000 Total Cost: $152,500. 96,250 200,600 95,000 196,500 107,000 314,800 146,750 70,000 125,625 89,000 86,650 2. Predict future total costs when sales volume is (a) 370,000 units and (b) 410,000 units. 370,000 units 410,000 units
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