Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold 1 2 3 4 5 6 323,500 168,500 268,500 208,500 293,500 193,500 Total Cost $ 161,000 104,750 209,100 103,500 205,000 115,500 Month 7 8 9 10 11 12 Units Sold 356,500 273,500 75,300 153,500 97,500 103,500 Total Cost $ 252,716 155,250 61,500 134, 125 97,500 78,150 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold 1 2 3 4 5 6 323,500 168,500 268,500 208,500 293,500 193,500 Total Cost $ 161,000 104,750 209,100 103,500 205,000 115,500 Month 7 8 9 10 11 12 Units Sold 356,500 273,500 75,300 153,500 97,500 103,500 Total Cost $ 252,716 155,250 61,500 134, 125 97,500 78,150 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Alden Company’s... (please refer to pictures to complete)
Transcribed Image Text:Total cost at the high point
Variable costs at the high point:
Volume at the high point:
Variable cost per unit
Total variable costs at the high point
Total fixed costs
Total cost at the low point
Variable costs at the low point:
Volume at the low point:
Variable cost per unit
Total variable costs at the low point
Total fixed costs
High-Low method - Calculation of variable cost per unit
High-Low method - Calculation of fixed costs
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 Units Sold
323,500
1
168,500
268,500
208,500
293,500
193,500
алашин
2
3
4
5
6
Total Cost Month Units Sold
7
8
9
10
11
12
$ 161,000
104,750
209,100
103,500
205,000
115,500
356,500
273,500
75,300
153,500
97,500
103,500
Total Cost
$ 252,716
155,250
61,500
134,125
97,500
78,150
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate
calculations.)
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