Question: Given the following cost and activity observations for Johnson Company's utilities, use the high-low method to calculate Johnson's fixed costs per month. Month Total Cost Production July $72,300 1,400 August $93,500 1,850 September $110,600 2,300 Using the high-low method, determine the variable cost per unit, and the total fixed costs. Select the correct answer: 1. $42.50 per unit and $12,500 respectively. 2. $43.50 per unit and $13,000 respectively. 3. $42.50 per unit and $13,000 respectively. 4. $43.50 per unit and $12,500 respectively.
Question: Given the following cost and activity observations for Johnson Company's utilities, use the high-low method to calculate Johnson's fixed costs per month. Month Total Cost Production July $72,300 1,400 August $93,500 1,850 September $110,600 2,300 Using the high-low method, determine the variable cost per unit, and the total fixed costs. Select the correct answer: 1. $42.50 per unit and $12,500 respectively. 2. $43.50 per unit and $13,000 respectively. 3. $42.50 per unit and $13,000 respectively. 4. $43.50 per unit and $12,500 respectively.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
Given the following cost and activity observations for Johnson Company's utilities, use the high-low method to calculate Johnson's fixed costs per month.
Month Total Cost Production
July
$72,300 1,400
August $93,500 1,850
September $110,600 2,300
Using the high-low method, determine the variable cost per unit, and the total fixed costs. Select the correct answer:
1. $42.50 per unit and $12,500 respectively.
2. $43.50 per unit and $13,000 respectively.
3. $42.50 per unit and $13,000 respectively.
4. $43.50 per unit and $12,500 respectively.
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