Havana Hats makes the world's best hats. Information for the last eight months follows:MonthJanuaryFebruaryMarchAprilMayJuneJulyAugustNumber of HatsProduced8,0004,5007,0008,6003,7506,0003,0005,000Variable cost per unitTotal fixed costTotal Cost$ 7,0005,0006,2507,7505,0006,2504,2505,750Required:Using the high-low method, calculate the variable cost per hat and total fixed cost per month.Note: Round your "Variable cost per unit" answer to 3 decimal places.

Lets understand the basics. In high low method, total costs are bifurcated into variable costs and…

Havana Hats makes the world's best hats. Information for the last eight months follows: Number of Hats Produced 8,000 4,500 7,000 8,600 3,750 6,000 Month January February March April May June July August 3,000 5,000 Total Cost $ 7,000 5,000 6,250 7,750 5,000 6,250 4,250 5,750 Required: Using the high-low method, calculate the variable cost per hat and total fixed cost per month

Havana Hats makes the world's best hats. Information for the last eight months follows: Number of Hats Produced 8,000 4,500 7,000 8,600 3,750 6,000 Month January February March April May June July August 3,000 5,000 Total Cost $ 7,000 5,000 6,250 7,750 5,000 6,250 4,250 5,750 Required: Using the high-low method, calculate the variable cost per hat and total fixed cost per month

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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