Sunland Company used high and low data from June and July to determine its variable cost of $12 per unit. Additional informationfollows:MonthJuneJulyUnitsproduced1700O $12751500Totalcosts$21600O $19200O $30200$31400If the company produces 1600 units in August, what is its expected total cost?29000

Sunland Company used high and low data from June and July to determine its variable cost of $12 per u follows: Month June July Units produced 1700 1500 Total costs $1275 $21600 O $19200 O $30200 $31400 29000 If the company produces 1600 units in August, what is its expected total cost?

Sunland Company used high and low data from June and July to determine its variable cost of $12 per u follows: Month June July Units produced 1700 1500 Total costs $1275 $21600 O $19200 O $30200 $31400 29000 If the company produces 1600 units in August, what is its expected total cost?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Silver Products has presented the following information for the past eight months operations: Month…

A: There are three forms of cost : 1. Variable cost 2. Fixed cost 3. Semi-variable cost The high-low…

Q: Using the least-squares regression method, the estimate of the fixed component of inspection cost…

A: least square regression formula is y = mx+bwe will use this formula for calculating the answer in…

Q: Swifty Manufacturing Company collected the following production data for the past month: Units…

A: Mixed cost problems are solved using the High -Low-cost method. Variable and fixed costs are…

Q: The following monthly data are available for Crane Company. which produces only one product: Selling…

A: Margin Of Safety = Actual Sales - Break-even Sales

Q: Total cost and number of units in the first seven months of 2020 are given below. According to this…

A: A cost equation seems to be a quantitative equation that a business may use to anticipate the costs…

Q: The controller of Cullumber Production has collected the following monthly cost data for analyzing…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Q: The manufacturing costs of Calico Industries for 3 months of the year are as follows: Total Cost…

A: Answer with all workings are as follows.

Q: Frazier Manufacturing Company collected the following production data for the past month: Units…

A: We need to calculate variable cost per unit= (Total cost at high level of activity - Total cost at…

Q: I want to answer this question

A: Problem: X Company uses the high-low method to predict maintenance costs each month, with machine…

Q: Please give me answer the question

A: Step 1: Determine the variable cost per machine hour, Variable Cost per Machine Hour =Highest…

Q: The following monthly data are available for Seasons Company, which produces only one product: Unit…

A: Margin of safety is the measure which is determined by the entity by deducting the break even sales…

Q: The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost…

A: The high-low method is used to differentiate the mixed cost. The mixed cost is the combination of…

Q: Waterway Industries used high and low data from June and July to determine its variable cost of $10…

A: The total production costs comprises variable and fixed costs. The variable costs changes with…

Q: a. What is the break-even value in Dirhams?

A: Information Provided: Selling price = 70 Variable cost = 30 Advertising costs = 263,069 Rent costs…

Q: Graves Company sells a single product and the company's monthly operating statistics are as follows:…

A: Contribution margin :— It is the difference between sales and variable cost. Units sold for…

Q: Sun 8 Ski Corporation is the producer ofa ski goggle. Next period's budget data appear below.…

A: Margin of safety = Total no. of units sold - Break-even sales units where, Break-even sales units =…

Q: 6. The Kentucky Tools Machine Shop wants to develop a cost estimating equation for its monthly cost…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: Given the folloviing cost and activity observations for Smithson Company's utilities, use the…

A: j

Q: The following information is available for a company's cost of sales over the last four months.…

A: The production costs are classified as variable and fixed costs. The high low method is used to…

Q: The manufacturing cost of Calico Industries for three months of the year are provided below.…

A: Variable cost: It is the cost that changes with the change with the change in level of output .e.g.,…

Q: Ramon Company reported the following units of production and sales for June and July: Units Month…

A: Per unit Fixed cost = (Fixed cost/Normal production) = $600,000 /…

Q: The manufacturing costs of Mocha Industries for three months of the year are as follows: Total Cost…

A: Variable costs: These are the costs that vary with the number of units produced. The more the units…

Q: Coraline Co. has the following cost and activity data. Month Units Total Cost September 80,000…

A: The High-low method of determining cost variance considers the highest and lowest cost being…

Q: If Sheffield uses the high-low method to project costs for the next quarter, what total cost…

A: The high-low method is a technique used to identify and separate fixed and variable costs within a…

Q: The manufacturing costs of Calico Industries for 3 months of the year are as follows: Total Cost…

A: Variable cost can be calculated as change in total cost divided by change in volume under the high…

Q: The X Company produced in one month 20,000 units at a total variable cost of $16,000. If 25,000…

A: VARIABLE COST Variable Cost is a Cost that varies with the level of output. variable costs include…

Q: Royal Enterprises has presented the following information for the past three months operations:…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Q: Sheridan Manufacturing Company collected the following production data for the past month: Units…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: Data concerning NikNik Corporation's activity for the 6 months appear below: Machine Electrical Cost…

A: High low method is a method of cost estimation under which variable costs and fixed costs are being…

Q: Given the following cost and activity observations for Johnson Company's utilities, use the high-low…

A: Introduction:- High-low method is one of the technique that is used to separate fixed and variable…

Q: The Coft Company manufactures zamboozas. The company's cost data f 6 months shows the following:…

A: Solution: Variable cost per unit =(cost at high point - cost at lowest point) / (Highest units -…

Q: Answe

A: Definition of Fixed costs:Fixed costs are expenses that remain constant regardless of a company's…

Q: A company produces three types of products A, B, and C, and is considering its production plan for…

A: Question is based on the concept of Cost accounting

Q: 39. A corporation has a defined-benefit plan. A pension liability will result at the end of the…

A: Pension obligation - projected lifetime of the former employee two types - defined benefits or…

Q: Juan Company considers repairs and maintenance (R&M) to be a mixed cost. Over the past five months…

A: There are three types of cost variable cost, fixed cost and mixed or semi variable cost.Semi…

Q: Mukh

A: The objective of the question is to calculate the contribution margin per unit, in total, and as a…

Q: Gabriel Company sells a product for $90 per unit. Variable costs are $40 per unit and fixed costs…

A: Net Sales Revenue per unit-Variable cost per unit=Unit Contribution margin $…

Q: A company reports the following information: Month January February March April Multiple Choice…

A: Variable cost per unit is a constant rate at which the cost will be computed. change in the number…

Q: Solve for the cost line equation using the high-low method: \table[[Month, Units Produced,Total…

A: Units producedTotal costHigh1200056000 Low450038000 Change750018000 Variable cost per unit…

Q: Portman Company's activity for the first three months of 2022 are as follows: Machine Hours…

A: High low method is one of important method used for cost estimation. Under this, highest level and…

Q: Lycan Industries electricity costs and machine hours over a six-month period follow: Machine…

A: THE HIGH-LOW METHOD IS USED IN ACCOUNTING TO SEGREGATE THE FIXED COST AND THE VARIABLE COST .

Q: Given the following cost and activity observations for Smithson Company's utilities, use the…

A: The high-low method is used to calculate variable and fixed costs from a semi-variable cost.…

Question

Sunland Company used high and low data from June and July to determine its variable cost of $12 per unit. Additional information
follows:
Month
June
July
Units
produced
1700
O $1275
1500
Total
costs
$21600
O $19200
O $30200
$31400
If the company produces 1600 units in August, what is its expected total cost?
29000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to variable cost and fixed cost

VIEW

Step 2: Working for fixed cost using high-low method

VIEW

Step 3: Working for total expected cost for August

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following data represents expected sales and costs for the month of October at an expected sales level of 15,000 units: Selling price $30 per unit Contribution margin $15 per unit Fixed production $5 per unit Fixed selling & admin. $60,000 expenses The break-even point in units is: Select one: 6,000 units O 9,000 units none of these 5,000 units
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following will be total cost in August if the company produces 415 units? Periods Total Cost No.of Units January 200 23,000 February 230 24,550 March 260 25,800 April 300 27,650 May 340 29,280 June 360 30,300 July 390 31,550 Select one: O a. 36,150 O b. 33,350 с. 32,675 O d. 34,000
The manufacturing costs of Calico Industries for 3 months of the year are as follows: Total Cost Production (units) April $111,100 276,200 May 82,600 163,200 June 106,300 244,600 Using the high-low method, the variable cost per unit and the total fixed costs are Round your intermediate calculations to two decimal places. a.$2.50 per unit and $4,205, respectively b.$4.50 per unit and $4,205, respectively c.$0.25 per unit and $42,050, respectively d.$0.45 per unit and $21,025, respectively
The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $52,866 1,860 Units May 55,160 2,600 Units June 58,818 3,780 Units (a) Using the high-low method, determine the variable cost per unit. Round your answer to two decimal places. per unit (b) Using the high-low method, determine total fixed costs.
How do you figure this out?
The following monthly data are available for Swifty Corporation. which produces only one product: Selling price per unit, $44; Unit variable expenses, $14; Total fixed expenses, $42000; Actual sales for the month of June, 4000 units. How much is the margin of safety for the company for June? $1400 $42000 $114400 $84000
.Noriel Company has collected the following information over the last six months: Month Units Produced Cost July 10,000 P 20,000 August 12,000 20,500 September 13,000 20,600 October 14,000 21,000 November 11,000 20,050 December 18,000 21,600 Using the high-low method, what is the variable cost per unit? CHOICES a. P 1.49 b. P .20 c. P 1.20 d. P 1.59
The manufacturing cost of Mocha Industries for three months of the year are provided below: Total Cost Production April $85, 160 1,600 Units May 89,064 2,240 Units June 95, 225 3,250 Units (a) Using the high - low method, determine the variable cost per unit. Round your answers to two decimal places. $ fill in the blank 1 per unit (b) Using the high-low method, determine total fixed costs. $ fill in the blank 2
The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y P24 Selling price per unit Variable cost per unit Contribution margin per unit P20 12 6. P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
Mukh
Voltar has collected the following data for recent months Month Miles Driven Total Cost March 41,00O 30,690 April 43,600 44,234 May 35,500 37,000 June 42,400 31,593 Required: a) Using the high-low method, find variable cost per unit, total fixed cost, and total cost equation? b) What is the estimated cost for a month in which 38,000 miles are driven
The following monthly data are available for National Co., which produces only one product: Selling price per unit, P42; Unit variable expenses, P14; Total fixed expenses, P42,000; Actual sales for the month of February, 5,000 units. How much is the margin of safety for the company in February?