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 1,620 $311,040 3,280 $405,390 5,220 $483,840 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 2,460 units of production.

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 1,620 $311,040 3,280 $405,390 5,220 $483,840 a. Determine the variable cost per unit and the total fixed cost. b. Based on part (a), estimate the total cost for 2,460 units of production.

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 7E: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and...

See similar textbooks

Similar questions

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: A. Determine the variable cost per unit and the total fixed cost. B. Based on part (B), estimate the total cost for 115,000 units of production.
Cena 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 Costs80,000 $25,200,00099,000 25,220,000130,000 31,770,000a. Determine the variable cost per unit and the total fixed cost. b. Based on part (A), estimate the total cost for 115,000 units of production.
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$
Tashiro 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 2,210 $196,560 910 126,360 1,370 167,920 a. Determine the variable cost per unit and the total fixed cost. Variable cost (Round to two decimal places.) $fill in the blank 1 per unit Total fixed cost $fill in the blank 2 b. Based on part (a), estimate the total cost for 1,120 units of production. Total cost for 1,120 units: $fill in the blank 3
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 7,425 $415,800 2,925 267,300 4,860 348,380 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $ per unit Total fixed cost: $ b. Based on part (a), estimate the total cost for 3,730 units of production. Total cost for 3,730 units: $
The following data have been extracted from the records of Puzzle Incorporated: Production level, in units Variable costs Fixed costs Mixed costs Total costs Required A Required B Required: a. Calculate the missing costs. b. Calculate the cost formula for mixed cost using the high-low method. c. Calculate the total cost that would be incurred for the production of 12,880 units. d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c. Required C Production level, in units Variable costs Fixed costs Mixed costs Total costs Complete this question by entering your answers in the tabs below. Calculate the missing costs. Note: Do not round intermediate calculations. February 9,200 $ 19,320 ? 16,312 $ 71,532 February 9,200 $ 19,320 $ 2 X 16,312 $ 71,532 Required D August August 20, 240 $? 35,900 ? $ 106,970 Answer is not complete. 20,240 34,255 35,900 52,475 $ 106,970
A. Continental Tyre Corporation is capable of producing 30,000 units of tyres per month. Below is information on production costs at the production levels of 10,000 units and 20,000 units. Production level Cost per unit Cost behaviour 10,000 20,000 Cost Element 10,000 units 20,000 units units units Direct Materials RM 4 RM 4 VARIABLE RM40,000 RM80,000 COST Direct Labor RM 6 RM 6 VARIABLE RM60,000 RM120,000 COST Indirect Materials RM 2 RM 2 VARIABLE RM20,000 RM40,000 COST Factory Utilities RM 1.2 RM 0.9 MIXED RM12,000 RM18,000 COST Factory Rental RM 2 RM 1 FIXED RM20,000 RM20,000 COST RM 2.4 RM 1.2 Factory Equipment Depreciation FIXED COST RM24,000 RM24,000
Subject: accounting
Atlanta Systems produces two different products, Product A, which sells for $450 per unit, and Product B, which sells for $800 per unit, using three different activities: Design, which uses Engineering Hours as an activity driver; Machining, which uses machine hours as an activity driver; and Inspection, which uses number of batches as an activity driver. The cost of each activity and usage of the activity drivers are as follows: Usage by Product A Usage by Product B Cost Design (Engineering Hours) Machining (Machine Hours) Inspection (Batches) $ 190,000 $1,800,000 $ 108 142 2,160 2,840 160,000 42 38 8 Atlanta manufactures 12,500 units of Product A and 10,200 units of Product B per month. Each unit of Product A uses $100 of direct materials and $45 of direct labor, while each unit of Product B uşes $140 of direct materials and $75 of direct labor.
Based on the image below for a manufacturing company, the correct statement is A. line b graphs total fixed costs B. point c represents the point at which the marginal contribution per unit increases C. line d graphs total costs D. area e (between lines b and d) represents the contribution margin
Determine this one
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 1,400 $302,400 2,740 425,040 4,200 470,400 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $fill in the blank 1 per unit Total fixed cost: $fill in the blank 2 b. Based on part (a), estimate the total cost for 2,020 units of production. Total cost for 2,020 units: $fill in the blank 3