Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $108,000. In January, it produced 2,600 backpacks at a total cost of $87,000. Using the high/low method, the total estimated fixed cost was: a. 108,000 b. 57,400 c. 50,600 d. None of the answer is correct

Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $108,000. In January, it produced 2,600 backpacks at a total cost of $87,000. Using the high/low method, the total estimated fixed cost was: a. 108,000 b. 57,400 c. 50,600 d. None of the answer is correct

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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Handy Hiking produces backpacks. In the previous year, its highest and lowest production levels occurred in July and January, respectively. In July, it produced 4,100 backpacks at a total cost of $115,000. In January, it produced 2,600 backpacks at a total cost of $88,000. Using the high/low method, the average variable cost per of producing a backpack was: a. 37.25 b. 36.38 c. 28.05 d. 18.00
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Subject: Acounting