Rundle Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year: Month January February March April May June July August September October November December Number of Cabinets Produced 880 3,640 1,990 670 1,570 1,340 1,170 1,720 2,320 2,940 3,320 320 Total Cost $ 21,400 32,500 29,400 18,400 28,900 27,200 25,900 31,900 32,900 31,100 32,800 9,260 Required a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line. (1) Enter the number of units and their costs in increasing order. b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (4) Calculate the total cost assuming 2.800 cabinets are made.
Rundle Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year: Month January February March April May June July August September October November December Number of Cabinets Produced 880 3,640 1,990 670 1,570 1,340 1,170 1,720 2,320 2,940 3,320 320 Total Cost $ 21,400 32,500 29,400 18,400 28,900 27,200 25,900 31,900 32,900 31,100 32,800 9,260 Required a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line. (1) Enter the number of units and their costs in increasing order. b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (4) Calculate the total cost assuming 2.800 cabinets are made.
Essentials of Business Analytics (MindTap Course List)
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ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
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![Rundle Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations
in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of
the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:
Number of
Cabinets
Month
January
February
3,640
March
1,990
April
670
May
1,570
EN
June
1,340
July
1,170
August
1,720
September
2,320
October
2,940
November
3,320
December
320
Produced Total Cost
880 $21,400
32,500
29,400
18,400
28,900
27,200
25,900
31,900
32,900
31,100
32,800
9,260
Required
a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line.
(1) Enter the number of units and their costs in increasing order.
b. Using the high-low method, compute the total cost equation for the preceding data.
(1) Compute the variable cost per unit.
(2) Compute total fixed costs.
(4) Calculate the total cost assuming 2,800 cabinets are made.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc322c13-0838-4b2b-9efa-f097db8d3366%2Fb4211267-09ce-453f-a2b6-b91f960aa196%2F6em4gn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rundle Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations
in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of
the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:
Number of
Cabinets
Month
January
February
3,640
March
1,990
April
670
May
1,570
EN
June
1,340
July
1,170
August
1,720
September
2,320
October
2,940
November
3,320
December
320
Produced Total Cost
880 $21,400
32,500
29,400
18,400
28,900
27,200
25,900
31,900
32,900
31,100
32,800
9,260
Required
a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line.
(1) Enter the number of units and their costs in increasing order.
b. Using the high-low method, compute the total cost equation for the preceding data.
(1) Compute the variable cost per unit.
(2) Compute total fixed costs.
(4) Calculate the total cost assuming 2,800 cabinets are made.
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