Beta Corp uses the high-low method of estimating costs. At its lowest activity level, it incurred total costs of $45,000 for 18,000 units. At its highest activity level, it incurred total costs of $66,000 for 27,000 units. What is the estimated variable cost per unit?

Beta Corp uses the high-low method of estimating costs. At its lowest activity level, it incurred total costs of $45,000 for 18,000 units. At its highest activity level, it incurred total costs of $66,000 for 27,000 units. What is the estimated variable cost per unit?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EB: Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following...

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Question

I need help solving this general accounting question with the proper methodology.

Beta Corp uses the high-low method of estimating costs.
At its lowest activity level, it incurred total costs of
$45,000 for 18,000 units.
At its highest activity level, it incurred total costs of
$66,000 for 27,000 units.
What is the estimated variable cost per unit?

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