o Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the ver questions (1) through (3) that follow. Units Produced Total Cost 4,360 units 300 1,000 5,800 1,750 3,015 $65,600 6,250 15,000 88,750 32,500 e 48,000 rom the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost plete the following table. Total Fixed Cost Variable Cost per Unit 15 0 With your Total Fixed Cost and Variable Cost per Unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced). Number of Units Produced Jary ruary ch 1 3,500 4,360 5,800 Total Cost
o Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the ver questions (1) through (3) that follow. Units Produced Total Cost 4,360 units 300 1,000 5,800 1,750 3,015 $65,600 6,250 15,000 88,750 32,500 e 48,000 rom the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost plete the following table. Total Fixed Cost Variable Cost per Unit 15 0 With your Total Fixed Cost and Variable Cost per Unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced). Number of Units Produced Jary ruary ch 1 3,500 4,360 5,800 Total Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![High-Low
Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data,
answer questions (1) through (3) that follow.
Units Produced
4,360 units
300
1,000
5,800
1,750
3,015
January
February
March
April
May
June
$65,600
6,250
15,000
88,750
32,500
48,000
1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs = (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost.
Complete the following table.
Total Fixed Cost
Variable Cost per Unit
15
2. With your Total Fixed Cost and Variable Cost per Unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced).
Total Cost
0
Number of
Units Produced
3,500
4,360
5,800
Total Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F034c8dbf-c1e3-4fe7-a5c2-11d6cef5d635%2Fa01efd82-abe7-4c3c-898a-775e436a288b%2Fmgjcs6m_processed.png&w=3840&q=75)
Transcribed Image Text:High-Low
Biblio Files Company is the chief competitor of Cover-to-Cover Company in the bookshelf business. Biblio Files is analyzing its manufacturing costs, and has compiled the following data for the first six months of the year. After reviewing the data,
answer questions (1) through (3) that follow.
Units Produced
4,360 units
300
1,000
5,800
1,750
3,015
January
February
March
April
May
June
$65,600
6,250
15,000
88,750
32,500
48,000
1. From the data previously provided, help Biblio Files Company estimate the fixed and variable portions of its total costs using the high-low method. Recall that Total Costs = (Variable Cost Per Unit x Number of Units Produced) + Fixed Cost.
Complete the following table.
Total Fixed Cost
Variable Cost per Unit
15
2. With your Total Fixed Cost and Variable Cost per Unit from the high-low method, compute the total cost for the following values of N (Number of Units Produced).
Total Cost
0
Number of
Units Produced
3,500
4,360
5,800
Total Cost
![Mastery Problem: Cost-Volume-Profit Analysis
Cost Behavior
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.
Total
Total
Lumber Utilities
Cost
$11,850
22,200
Cost
9,000 shelves $99,000
$120,000
18,000 shelves 198,000
120,000
36,000 shelves 396,000 42,900
120,000
45,000 shelves 495,000 53,250
120,000
1. Determine whether the costs in the table are variable, fixed, mixed, or none of these.
Variable Cost
Mixed Cost
Fixed Cost
Units
Produced
Lumber
Utilities
Depreciation
2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost.
Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places.
Cost
Lumber
Utilities
Depreciation
Fixed Portion
of Cost
$
0
Total Machine
Depreciation
Cost
1,000
120,000
Variable Portion
of Cost (per Unit)
$
11
1.15
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F034c8dbf-c1e3-4fe7-a5c2-11d6cef5d635%2Fa01efd82-abe7-4c3c-898a-775e436a288b%2Fq460s2t_processed.png&w=3840&q=75)
Transcribed Image Text:Mastery Problem: Cost-Volume-Profit Analysis
Cost Behavior
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.
Total
Total
Lumber Utilities
Cost
$11,850
22,200
Cost
9,000 shelves $99,000
$120,000
18,000 shelves 198,000
120,000
36,000 shelves 396,000 42,900
120,000
45,000 shelves 495,000 53,250
120,000
1. Determine whether the costs in the table are variable, fixed, mixed, or none of these.
Variable Cost
Mixed Cost
Fixed Cost
Units
Produced
Lumber
Utilities
Depreciation
2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost.
Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places.
Cost
Lumber
Utilities
Depreciation
Fixed Portion
of Cost
$
0
Total Machine
Depreciation
Cost
1,000
120,000
Variable Portion
of Cost (per Unit)
$
11
1.15
0
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education