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 Units Sold 318,000 Total Cost $ 155,500 2 163,000 99,250 3 263,000 203,600 4 203,000 98,000 5 288,000 199,500 6 188,000 110,000 7 362,000 292,624 8 268,000 149,750 9 76,400 67,000 10 148,000 128,625 11 92,000 92,000 12 98,000 83,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. Note: Do not round intermediate calculations.

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

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
318,000
2
163,000
3
263,000
Total Cost
$ 155,500
99,250
203,600
4
203,000
98,000
5
288,000
199,500
6
188,000
110,000
7
362,000
292,624
8
268,000
149,750
9
76,400
67,000
10
148,000
128,625
11
92,000
92,000
12
98,000
83,650
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method.
Note: Do not round intermediate calculations.
Total cost at the highest volume
Variable costs at highest volume:
Highest volume
Variable cost per unit
Total variable costs at highest volume
Total fixed costs
Total cost at the lowest volume
Variable costs at lowest volume:
Lowest volume
Variable cost per unit
Total variable costs at lowest volume
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 1 318,000 2 163,000 3 263,000 Total Cost $ 155,500 99,250 203,600 4 203,000 98,000 5 288,000 199,500 6 188,000 110,000 7 362,000 292,624 8 268,000 149,750 9 76,400 67,000 10 148,000 128,625 11 92,000 92,000 12 98,000 83,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. Note: Do not round intermediate calculations. Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit Total variable costs at highest volume Total fixed costs Total cost at the lowest volume Variable costs at lowest volume: Lowest volume Variable cost per unit Total variable costs at lowest volume Total fixed costs High-Low method - Calculation of variable cost per unit High-Low method - Calculation of fixed costs
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