High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The production are as follows: Units Produced 1,680 3,140 4,480 Total Costs $236,880 242,140 368,480 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) Total fixed cost: b. Based on part (a), estimate the total cost for 2,220 units of production. Total cost for 2,220 units: per unit
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The production are as follows: Units Produced 1,680 3,140 4,480 Total Costs $236,880 242,140 368,480 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) Total fixed cost: b. Based on part (a), estimate the total cost for 2,220 units of production. Total cost for 2,220 units: per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
HELP
Transcribed Image Text:High-Low Method
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The da
production are as follows:
Units Produced Total Costs
1,680
3,140
4,480
$236,880
242,140
368,480
a. Determine the variable cost per unit and the total fixed cost.
Variable cost: (Round to the nearest dollar.)
Total fixed cost:
b. Based on part (a), estimate the total cost for 2,220 units of production.
Total cost for 2,220 units:
per unit
Expert Solution
Explanation -
Variable Cost - Variable Cost is the cost that varies according to the change in Output.
Fixed Cost - Fixed Costs are the cost that remain fixed even of the output is changed.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education