Oki Products, Ltd., has observed the following processing costs at various levels of activity over the last 15 months: Month 1 2 234567 3 Units Produced 4,500 11,000 12,000 5,500 9,000 10,500 7,500 5.000 Processing Cost $38,000 $52,000 $56,000 $40,000 $47,000 $52,000 $44,000 $41.000

Oki Products, Ltd., has observed the following processing costs at various levels of activity over the last 15 months: Month 1 2 234567 3 Units Produced 4,500 11,000 12,000 5,500 9,000 10,500 7,500 5.000 Processing Cost $38,000 $52,000 $56,000 $40,000 $47,000 $52,000 $44,000 $41.000

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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Question

Q-2) Using the quick and dirty method, what is the approximate monthly fixed cost? the approximate variable cost per unit processed? show your computations.

EXERCISE 3-2 Scattergraph Analysis [LO2]
Oki Products, Ltd., has observed the following processing costs at various levels of activity over the last 15
months:
Month
12345678
10
11.
2345
12
13
14
15
Units
Produced
4,500
11,000
12,000
5,500
9,000
10,500
7,500
5,000
11,500
6,000
8,500
10,000
6,500
9,500
8,000
Processing
Cost
$38,000
$52,000
$56,000
$40,000
$47,000
$52,000
$44,000
$41,000
$52,000
$43,000
$48,000
$50,000
$44,000
$48,000
$46,000
C

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