The Western Company presents the production and cost data for the first six months of the 2015. Determine the following using High-low method a.     estimated variable cost rate b.     fixed cost c. Also determine the cost function on the basis of data given above.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Western Company presents the production and cost data for the first six months of the 2015.

Determine the following using High-low method

a.     estimated variable cost rate

b.     fixed cost

c. Also determine the cost function on the basis of data given above.

Month
Units Produced
Mixed Cost ($)
January
February
45,000
56,000
15,000
18,000
March
22,000
60,000
April
May
16,000
48,000
29,000
66,000
June
26,000
62,000
Transcribed Image Text:Month Units Produced Mixed Cost ($) January February 45,000 56,000 15,000 18,000 March 22,000 60,000 April May 16,000 48,000 29,000 66,000 June 26,000 62,000
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