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...
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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.
Transcribed Image Text: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.
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