1. Determine the variable cost per unit and the fixed cost using the high-low method.2. What is the equation of the total mixed cost function? The 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$230,0003:500August250,0003,750September260,0003,800October220,0003,400November340,0005,800December330,0005:500January200,0002,900FebruaryMarch210,0003:300240,0003,600April380,0005,900Мay350,0005,600June290,0005,000

Variable Cost per unit= (Highest units - Lowest units)/ (Highest Cost- Lowest Cost)…

Answered: Determine the variable cost per unit…

Determine the variable cost per unit and the fixed cost using the high-low method. 2. What is the equation of the total mixed cost function?

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

1. Determine the variable cost per unit and the fixed cost using the high-low method.
2. What is the equation of the total mixed cost function?

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
March
210,000
3:300
240,000
3,600
April
380,000
5,900
Мay
350,000
5,600
June
290,000
5,000

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