i) ii) 5. Susan Wesley obtains monthly production cost information from the financial accounting department of Bikes Unlimited for the last 12 months. Total Production Costs Reporting Period (Month) July August September October November December January February March April May June $230,000 250,000 260,000 220,000 340,000 330,000 200,000 210,000 240,000 380,000 350,000 290,000 Level of Activity (Units Produced) 3,500 3,750 3,800 3,400 5,800 5,500 2,900 3,300 3,600 5,900 5,600 5,000 Determine the equation of the total mixed cost function, using the high-low method. Prepare the scatter gram, and use the "line of best fit" to determine the company's fixed cost per month and the variable cost per unit.

i) ii) 5. Susan Wesley obtains monthly production cost information from the financial accounting department of Bikes Unlimited for the last 12 months. Total Production Costs Reporting Period (Month) July August September October November December January February March April May June $230,000 250,000 260,000 220,000 340,000 330,000 200,000 210,000 240,000 380,000 350,000 290,000 Level of Activity (Units Produced) 3,500 3,750 3,800 3,400 5,800 5,500 2,900 3,300 3,600 5,900 5,600 5,000 Determine the equation of the total mixed cost function, using the high-low method. Prepare the scatter gram, and use the "line of best fit" to determine the company's fixed cost per month and the variable cost per unit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ii)
5. Susan Wesley obtains monthly production cost information from the financial
accounting department of Bikes Unlimited for the last 12 months.
Total Production Costs
Reporting Period
(Month)
July
August
September
October
November
December
January
February
March
April
May
June
$230,000
250,000
260,000
220,000
340,000
330,000
200,000
210,000
240,000
380,000
350,000
290,000
Level of Activity
(Units Produced)
3,500
3,750
3,800
3,400
5,800
5,500
2,900
3,300
3,600
5,900
5,600
5,000
Determine the equation of the total mixed cost function, using the high-low method.
Prepare the scatter gram, and use the "line of best fit" to determine the company's
fixed cost per month and the variable cost per unit.

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