Alden Co's monthly unit sales and total cost data for its operating activities of the past year following. Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold Total Cost 1 320,000 $160,000 7 340,000 $220,000 2 160,000 100,000 8 280,000 160,000 3 280,000 220,000 9 80,000 64,000 4 200,000 100,000 10 160,000 140,000 5 300,000 230,000 11 100,000 100,000 6 200,000 120,000 12 110,000 80,000 Required: 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. 2. Use the results from part Ito predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units.

Alden Co's monthly unit sales and total cost data for its operating activities of the past year following. Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold Total Cost 1 320,000 $160,000 7 340,000 $220,000 2 160,000 100,000 8 280,000 160,000 3 280,000 220,000 9 80,000 64,000 4 200,000 100,000 10 160,000 140,000 5 300,000 230,000 11 100,000 100,000 6 200,000 120,000 12 110,000 80,000 Required: 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. 2. Use the results from part Ito predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 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

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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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 Units Sold Total Cost 1 322,000 $ 159,500 2 167,000 103,250 3 267,000 207,600 4 207,000 102,000 5 292,000 203,500 6 192,000 114,000 7 358,000 263,504 8 272,000 153,750 9 75,600 63,000 10 152,000 132,625 = 96,000 96,000 12 102,000 79,650 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. High-Low method - Calculation of variable cost per unit
[The following information applies to the questions displayed below.] 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 Total Cost Month Units Sold Total Cost 1 324,500 $ 162,000 7 355,500 $ 245,564 2 169,500 105,750 8 274,500 156,250 3 269,500 210,100 9 75,100 60,500 4 209,500 104,500 10 154,500 135,125 5 294,500 206,000 11 6 194,500 116,500 12 98,500 104,500 98,500 77,150 Problem 18-1A (Algo) Part 1 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of variable cost per unit 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 High-Low method - Calculation of fixed costs Total cost at the low point Variable costs at the low point: Volume at the…
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! Required information [The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Units Month Units Sold Total Cost Month Units Sold 1 7 2 8 9 10 11 12 Total 3 4 5 6 319,000 164,000 264,000 204,000 289,000 189,000 $ $156,500 100,250 204,600 (a) 99,000 200,500 111,000 2. Predict future total costs when sales volume is (a) 378,000 units and (b) 418,000 units. Predictions 378,000 0 $ (b) 418,000 361,000 269,000 0 76,200 149,000 93,000 99,000 Total Cost $285,296 150,750 66,000 129,625 93,000 82,650
Alden Company’s... (please refer to pictures to complete)
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