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.

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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Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 770 $120,960 1,470 136,010 2,170 188,160 a. Determine the variable cost per unit and the total fixed cost.Variable cost fill in the blank 1 of 2$Total fixed cost fill in the blank 2 of 2$ b. Based on part (a), estimate the total cost for 1,060 units of production.Total cost for 1,060 units fill in the blank 1 of 1$
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