Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month January February March April May June Number of Appointments 300 200 500 425 350 275 Variable Cost per Unit Fixed Cost Total Cost $ 6,100 5,000 6,650 6,050 6,500 5,050 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month January February March April May June Number of Appointments 300 200 500 425 350 275 Variable Cost per Unit Fixed Cost Total Cost $ 6,100 5,000 6,650 6,050 6,500 5,050 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of
the year:
Month
January
February
March
April
May
June
Number of
Appointments
300
200
500
425
350
275
Variable Cost per Unit
Fixed Cost
Total Cost
$ 6,100
5,000
6,650
6,050
6,500
5,050
Required:
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.
Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2265b8bc-4098-4545-ad65-d615bcfa6dec%2F0339489f-024e-49ca-b8ed-275efb4056f4%2Fq6u4cby_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of
the year:
Month
January
February
March
April
May
June
Number of
Appointments
300
200
500
425
350
275
Variable Cost per Unit
Fixed Cost
Total Cost
$ 6,100
5,000
6,650
6,050
6,500
5,050
Required:
Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment.
Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.
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