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 2,600 $295,200 4,690 399,830 6,600 459,200 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 3,310 units of production. Total cost for 3,310 units:
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 2,600 $295,200 4,690 399,830 6,600 459,200 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 3,310 units of production. Total cost for 3,310 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 7E: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and...
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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
2,600
4,690
6,600
$295,200
399,830
459,200
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 3,310
units of production.
Total cost for 3,310 units:
per unit
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe8dbb38b-67db-4869-a2fb-b3f37c286b0c%2F8a315531-c734-4521-8d70-74e2854fde92%2Fi2i4ygo_processed.jpeg&w=3840&q=75)
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
2,600
4,690
6,600
$295,200
399,830
459,200
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 3,310
units of production.
Total cost for 3,310 units:
per unit
$
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