Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level. Units Produced Total Cost March 9,859 $ 18,868 April 8,736 17,020 May 10,400 19,620 June 8,520 16,612 July 9,176 17,475 1) Compute the variable cost per unit using the high-low method. 2) Compute the fixed cost elements using the high-low method. 3) Estimate the total cost if the company produces 9,060 units.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2DQ: Which of the following costs would be classified as variable and which would be classified as fixed,...
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Westerville Company accumulates the following data
concerning a mixed cost, using units produced as the activity
level.
Units Produced
Total Cost
March
9,859
$ 18,868
April
8,736
17,020
May
10,400
19,620
June
8,520
16,612
July
9,176
17,475
1) Compute the variable cost per unit using the high-low
method.
2) Compute the fixed cost elements using the high-low
method.
3) Estimate the total cost if the company produces 9,060 units.
Transcribed Image Text:Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level. Units Produced Total Cost March 9,859 $ 18,868 April 8,736 17,020 May 10,400 19,620 June 8,520 16,612 July 9,176 17,475 1) Compute the variable cost per unit using the high-low method. 2) Compute the fixed cost elements using the high-low method. 3) Estimate the total cost if the company produces 9,060 units.
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