E5-7 (Algo) Estimating Cost Behavior Using High-Low Method [LO 5-3] Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Number of Cavities Month January Filled Total Cost 300 $ 5,100 February 375 5,300 March 625 6,350 April 400 5,200 May 650 6,300 June 600 6,300 July 350 5,000 August 675 6,300 September 550 6,000 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate Canyon's total cost for filling 700 cavities. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Note: Round your Variable cost per unit to 2 decimal places. Fixed cost $ 3,920 Variable cost per cavity filled $ 3.60 X < Required 1 Required 2 >
E5-7 (Algo) Estimating Cost Behavior Using High-Low Method [LO 5-3] Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Number of Cavities Month January Filled Total Cost 300 $ 5,100 February 375 5,300 March 625 6,350 April 400 5,200 May 650 6,300 June 600 6,300 July 350 5,000 August 675 6,300 September 550 6,000 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. 2. Using these estimates, calculate Canyon's total cost for filling 700 cavities. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Note: Round your Variable cost per unit to 2 decimal places. Fixed cost $ 3,920 Variable cost per cavity filled $ 3.60 X < Required 1 Required 2 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![E5-7 (Algo) Estimating Cost Behavior Using High-Low Method [LO
5-3]
Canyon Dental Services is a specialized dental practice whose only service is filling
cavities. Canyon has recorded the following for the past nine months:
Number of Cavities
Month
January
Filled
Total Cost
300
$ 5,100
February
375
5,300
March
625
6,350
April
400
5,200
May
650
6,300
June
600
6,300
July
350
5,000
August
675
6,300
September
550
6,000
Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity
filled.
2. Using these estimates, calculate Canyon's total cost for filling 700 cavities.
> Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
Note: Round your Variable cost per unit to 2 decimal places.
Fixed cost
$
3,920 x
Variable cost per cavity filled
$
3.60 X
<
Required 1
Required 2 >
Prev
7 of 8
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Transcribed Image Text:E5-7 (Algo) Estimating Cost Behavior Using High-Low Method [LO
5-3]
Canyon Dental Services is a specialized dental practice whose only service is filling
cavities. Canyon has recorded the following for the past nine months:
Number of Cavities
Month
January
Filled
Total Cost
300
$ 5,100
February
375
5,300
March
625
6,350
April
400
5,200
May
650
6,300
June
600
6,300
July
350
5,000
August
675
6,300
September
550
6,000
Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity
filled.
2. Using these estimates, calculate Canyon's total cost for filling 700 cavities.
> Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
Note: Round your Variable cost per unit to 2 decimal places.
Fixed cost
$
3,920 x
Variable cost per cavity filled
$
3.60 X
<
Required 1
Required 2 >
Prev
7 of 8
Next >
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