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Total Production Costs $230,000 Level of Activity (Units Produced) Month July 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January o06 3,300 200,000 February 210,000 Мarch 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the scatter diagram, elearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (ese o55.000 units )

Total Production Costs $230,000 Level of Activity (Units Produced) Month July 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January o06 3,300 200,000 February 210,000 Мarch 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the scatter diagram, elearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (ese o55.000 units )

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 38E: Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month:...
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ader Touch units produced over a twelve month period. Level of Activity (Units Produced) Month Total Production Costs July August September $230,000 3,500 250,000 3,750 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 Мay 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the seatter diagram, elearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (useo55.000 uits ) e) In view of the departnment s cost behaviour pattern, which of the two methods appear imore appropriate Explain vour answer. Type here to sear
Transcribed Image Text:ader Touch units produced over a twelve month period. Level of Activity (Units Produced) Month Total Production Costs July August September $230,000 3,500 250,000 3,750 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 Мay 350,000 5,600 June 290,000 5,000 a) Determine the variable cost per unit and the fixed cost using the high-low method. b) What is the equation of the total mixed cost function? c) Prepare the seatter diagram, elearly showing any outliers. d) Using the line of best-fit, determine the company's fixed cost per month and the variable cost per unit. (useo55.000 uits ) e) In view of the departnment s cost behaviour pattern, which of the two methods appear imore appropriate Explain vour answer. Type here to sear
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