Ziegler 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 1,200 2,330 3,200 $140,400 200,930 218,400 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) Total fixed cost: b. Based on part (a), estimate the total cost for 1,580 units of production. Total cost for 1,580 units: per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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High-Low Method
Ziegler 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
1,200
2,330
3,200
$140,400
200,930
218,400
a. Determine the variable cost per unit and the total fixed cost.
Variable cost: (Round to the nearest dollar.)
Total fixed cost:
per unit
b. Based on part (a), estimate the total cost for 1,580 units of production.
Total cost for 1,580 units:
Transcribed Image Text:High-Low Method Ziegler 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 1,200 2,330 3,200 $140,400 200,930 218,400 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) Total fixed cost: per unit b. Based on part (a), estimate the total cost for 1,580 units of production. Total cost for 1,580 units:
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