Assistance with d and e plz May350,0005,600June290,0005,000a) Determine the variable cost per unit and the fixed cost using the high-lowmethod.b) What is the equation of the total mixed cost function?c) Prepare the scatter diagram, clearly showing any outliers.d) Using the line of best-fit, determine the company's fixed cost per month and thevariable cost per unit. (use og 5,000 units.)S.e) In view of the department's cost behaviour pattern, which of the two methodsappear more appropriate? Explain your answer, Discussion QuestionThe table below shows monthly data collected on production costs and on the number ofunits produced over a twelve month period.MonthTotal ProductionLevel of Activity(Units Produced)CostsJuly$230,0003.500August250,0003.750September260,0003.800October220,0003.400November340,0005.800December330,0005.500January200,0002,900February210,0003.300March240,0003.600April380,0005,900May350,0005,600June290,0005,000

Line of Best Fit A line of best fit can be defined as a straight line that denotes the best…

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cost t per unit an

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

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 38E: Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month:...

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Question

Assistance with d and e plz

May
350,000
5,600
June
290,000
5,000
a) Determine the variable cost per unit and the fixed cost using the high-low
method.
b) What is the equation of the total mixed cost function?
c) Prepare the scatter diagram, clearly showing any outliers.
d) Using the line of best-fit, determine the company's fixed cost per month and the
variable cost per unit. (use og 5,000 units.)
S.
e) In view of the department's cost behaviour pattern, which of the two methods
appear more appropriate? Explain your answer,

Discussion Question
The table below shows monthly data collected on production costs and on the number of
units produced over a twelve month period.
Month
Total Production
Level of Activity
(Units Produced)
Costs
July
$230,000
3.500
August
250,000
3.750
September
260,000
3.800
October
220,000
3.400
November
340,000
5.800
December
330,000
5.500
January
200,000
2,900
February
210,000
3.300
March
240,000
3.600
April
380,000
5,900
May
350,000
5,600
June
290,000
5,000

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