Subject - financial account Carson, which uses the high-low method of estimatingcosts, reported total costs of $24 per unit whenproduction was at its lowest level, at 10,000 units.When production doubled to its highest level, the totalcost per unit dropped to $15. Carson would estimate thevariable cost per unit?

To estimate the variable cost per unit using the high-low method, we need to analyze the cost…

Answered: Carson, which uses the high-low method…

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 16DQ

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Cardinal uses the high-low method of estimating costs. Cardinal had total costs of $26,450 at its lowest level of activity, when 7,100 units were sold. When, at its highest level of activity, sales equaled 12,700 units, total costs were $39,890. What would be the estimated variable cost per unit be?
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Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to 27,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.30. On the basis of this information, the variable cost per machine hour was (Round your final answer to 2 decimal places): On the basis of this information, the fixed cost was (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount): On the basis of this information, what were total maintenance costs when the company experienced 25,000 machine hours? (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount.)
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Please Provide Correct Answer
Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 20,000 machine hours of activity, total maintenance costs averaged $34.30 per hour. When activity jumped to 27,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $27.30. On the basis of this information, the variable cost per machine hour was (Round your final answer to 2 declmal places): On the basis of this information, the fixed cost was (Round your Intermedlate calculations to 2 declmal places final answer to nearest dollar amount): On the basis of this information, what were total maintenance costs when the company experienced 25,000 machine hours? (Round your Intermedlate calculatlons to 2 declmal places final answer to nearest dollar amount.)
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Carson, which uses the high-low method of estimating costs, reported total costs of $24 per unit when production was at its lowest level, at 10,000 units. When production doubled to its highest level, the total cost per unit dropped to $15. Carson would estimate the variable cost per unit?