Required information [The following information applies to the questions displayed below.] Alden Co's monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month Units Sold Total Cost Month Units Sold Total Cost 364, 500 265,500 76,900 145, 500 89,500 95,500 $311,084 147, 250 69,500 126,125 89,500 86,150 1 $153,000 315,500 160,500 260,500 200,500 285,500 185,500 2. 96,750 201,100 95,500 197,000 107,500 8 3 4 10 5 11 12 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of Variable Cost per unit Change in cost Cost at high point minus cost at low point Change in volume Volume at low point minus volume at high point High-Low method - Calculation of Fixed Costs Total cost at the high point $ 311,084.00 Variable costs at the high point Volume at the high point: 364,500 units sold Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Required information
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[The following information applies to the questions displayed below.]
Alden Co.’s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.
| Month | Units Sold | Total Cost | Month | Units Sold | Total Cost | |||||||||||||||
| 1 | 315,500 | $ | 153,000 | 7 | 364,500 | $ | 311,084 | |||||||||||||
| 2 | 160,500 | 96,750 | 8 | 265,500 | 147,250 | |||||||||||||||
| 3 | 260,500 | 201,100 | 9 | 76,900 | 69,500 | |||||||||||||||
| 4 | 200,500 | 95,500 | 10 | 145,500 | 126,125 | |||||||||||||||
| 5 | 285,500 | 197,000 | 11 | 89,500 | 89,500 | |||||||||||||||
| 6 | 185,500 | 107,500 | 12 | 95,500 | 86,150 | |||||||||||||||
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
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![Required information
[The following information applies to the questions displayed below.]
Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to
use these data to predict future fixed and variable costs.
Month
Units Sold
Total Cost
Month
Units Sold
Total Cost
1.
$153,000
364,500
$311,084
315,500
160,500
260,500
7
2
96,750
201,100
8
265, 500
147, 250
3.
76,900
69,500
4
200,500
95,500
10
145, 500
126, 125
285,500
185,500
197,000
107,500
11
89,500
89,500
12
95,500
86,150
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate
calculations.)
High-Low method - Calculation of Variable Cost per unit
Change in cost
Cost at high point minus cost at low point
Change in volume
Volume at low point minus volume at high point
High-Low method - Calculation of Fixed Costs
Total cost at the high point
$ 311,084.00
Variable costs at the high point:
Volume at the high point:
364,500 units sold
Variable cost per unit
Total variable costs at the high point
Total fixed costs
Total cost at the low point
Variable costs at the low point:
Volume at the low point:
Variable cost per unit
Total variable costs at the low point
Total fixed costs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F425a9a45-7c16-4159-a26d-51882221639a%2Fb32f77f3-e40b-422c-8454-315dcaac46e3%2Fc8ob6rq_processed.jpeg&w=3840&q=75)
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