Rundle Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operationsin January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost ofthe cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:Number ofCabinetsMonthJanuaryFebruary3,640March1,990April670May1,570ENJune1,340July1,170August1,720September2,320October2,940November3,320December320Produced Total Cost880 $21,40032,50029,40018,40028,90027,20025,90031,90032,90031,10032,8009,260Requireda. 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.

In cost accounting, the high-low method helps divide a mixed cost into its fixed and variable…

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.

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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