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.

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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the above sotution will be correct solution