Not use ai solution please and accounting question Total costs were $54,200 when 12,000 units were produced and$68,500 when 18,000 units were produced. Use the high-low methodto find the estimated total costs for a production level of 15,000units.

Step 1: Definition of High-Low MethodThe high-low method is a technique used to estimate the…

Answered: Total costs were $54,200 when 12,000…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...

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A company expects to manufacture 7,000 units. Its direct material costs are $10 per unit, direct labor is $9 per unit, and variable overhead is $3 per unit. The fixed overhead is estimated at $49,000. How much would each unit cost under both the variable method and the absorption method?
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Anderson Inc. has decided to use the high-low method to estimate total costs and determine the fixed and variable cost components. The data for various levels of production are as follows: When 6,500 units were produced, the total cost was $420,000. When 2,500 units were produced, the total cost was $250,000. (a) Determine the variable cost per unit and the total fixed cost. Variable cost per unit: Total fixed cost: (b) Estimate the total cost for producing 3,200 units. Total cost for 3,200 units:
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A known manufacturing company has estimated the ff. Component for a new product. Fixed cost= 50,000 Material cost per unit= 2.15 Labor cost per unit = 2 Revenue per unit= 7.50 Vary the production volume from 0 to 100,000 in increments of 10,000. The five different material costs are 1.50,1.95,2.15,2.85 and 3.25. Using the spreadsheet model, what will be the resulting profit if the company decides to make 70,000 units of the new product. Choices: A.623,018 B.176,400 C.45,705 D.No choice given E.138,430
Question: Production costs were $128,500 at 45,000 units and $163,000 at 58,000 units. Using the high-low method, calculate the estimated total costs for producing 50,000 units.
Within a relevant range of 10,000 units - 50,000 units, consider the following information: At a volume of 20,000 units, fixed expenses per unit = $12.50. At a volume of 25,000 units, average cost = $18.00 per unit. Compute average cost per unit at a volume = 40,000
A process costs $200 to set up. The run time is 5 minutes per piece and the run costis $30 per hour. Determine the following:a. The fixed cost.b. The variable cost.c. The total cost and unit cost for a lot of 600.d. The total cost and unit cost for a lot of 1200.
Madison Industries has equivalent units of 8,000 for materials and for conversion costs. Total manufacturing costs are $200,000. Total materials costs are $150,000. How much is the conversion cost per unit? Group of answer choices $6.25. $2.50. $25.00. $5.00.
At a production level of 5,600 units a project has total costs of 89,000. The variable cost per unit is 11.20. What is the amount of the total fixed costs if the production level is increased to 6,100 units without increasing the total fixed assets?

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Total costs were $54,200 when 12,000 units were produced and $68,500 when 18,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 15,000 units.