Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present. High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units. V a r i a b l e cos t p e r u n i t = H i g h e s t t o t a l cos t − L o w e s t t o t a l cos t H i g h e s t s a l e s v o l u m e − L o w e s t s a l e s v o l u m e F i x e d cos t = H i g h e s t t o t a l cos t − ( var i a b l e cos t p e r u n i t ) × ( H i g h e s t s a l e s v o l u m e ) 1. To Plot: A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

Question

Want to see the full answer?

Answer 1

Question

Chapter 21, Problem 2BPSB

To determine

Introduction:

Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present.

High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units.

$V a r i a b l e \cos t p e r u n i t = \frac{H i g h e s t t o t a l \cos t - L o w e s t t o t a l \cos t}{H i g h e s t s a l e s v o l u m e - L o w e s t s a l e s v o l u m e}$

$F i x e d \cos t = H i g h e s t t o t a l \cos t - (var i a b l e \cos t p e r u n i t) \times (H i g h e s t s a l e s v o l u m e)$

1.

To Plot:

A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

To determine

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

To determine

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Give me solution to this financial accounting question

Dear tutor solve with appropriate method.

Answer 2

Question

Chapter 21, Problem 2BPSB

To determine

Introduction:

Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present.

High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units.

$V a r i a b l e \cos t p e r u n i t = \frac{H i g h e s t t o t a l \cos t - L o w e s t t o t a l \cos t}{H i g h e s t s a l e s v o l u m e - L o w e s t s a l e s v o l u m e}$

$F i x e d \cos t = H i g h e s t t o t a l \cos t - (var i a b l e \cos t p e r u n i t) \times (H i g h e s t s a l e s v o l u m e)$

1.

To Plot:

A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

To determine

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

To determine

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 21, Problem 2BPSB

To determine

Introduction:

Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present.

High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units.

$V a r i a b l e \cos t p e r u n i t = \frac{H i g h e s t t o t a l \cos t - L o w e s t t o t a l \cos t}{H i g h e s t s a l e s v o l u m e - L o w e s t s a l e s v o l u m e}$

$F i x e d \cos t = H i g h e s t t o t a l \cos t - (var i a b l e \cos t p e r u n i t) \times (H i g h e s t s a l e s v o l u m e)$

1.

To Plot:

A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

To determine

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

To determine

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 21, Problem 2BPSB

To determine

Introduction:

Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present.

High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units.

$V a r i a b l e \cos t p e r u n i t = \frac{H i g h e s t t o t a l \cos t - L o w e s t t o t a l \cos t}{H i g h e s t s a l e s v o l u m e - L o w e s t s a l e s v o l u m e}$

$F i x e d \cos t = H i g h e s t t o t a l \cos t - (var i a b l e \cos t p e r u n i t) \times (H i g h e s t s a l e s v o l u m e)$

1.

To Plot:

A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

To determine

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

To determine

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 21, Problem 2BPSB

To determine

Introduction:

Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present.

High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units.

$V a r i a b l e \cos t p e r u n i t = \frac{H i g h e s t t o t a l \cos t - L o w e s t t o t a l \cos t}{H i g h e s t s a l e s v o l u m e - L o w e s t s a l e s v o l u m e}$

$F i x e d \cos t = H i g h e s t t o t a l \cos t - (var i a b l e \cos t p e r u n i t) \times (H i g h e s t s a l e s v o l u m e)$

1.

To Plot:

A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

To determine

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

To determine

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Answer 6

Chapter 21, Problem 2BPSB

To determine

Introduction:

Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present.

High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units.

$V a r i a b l e \cos t p e r u n i t = \frac{H i g h e s t t o t a l \cos t - L o w e s t t o t a l \cos t}{H i g h e s t s a l e s v o l u m e - L o w e s t s a l e s v o l u m e}$

$F i x e d \cos t = H i g h e s t t o t a l \cos t - (var i a b l e \cos t p e r u n i t) \times (H i g h e s t s a l e s v o l u m e)$

1.

To Plot:

A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

Answer 7

Chapter 21, Problem 2BPSB

To determine

Introduction:

Scatter diagram: A scatter diagram is a graph where two variables are plotted along two axis in the form of dots and it reveals a correlation, if any present.

High-low method: High low method provides a technique to estimate the fixed cost and variable cost separately from the given mixed cost. In this case, the extreme two values of the activity level are chosen from the given set of data and also their corresponding total costs to estimate the fixed cost and variable cost as shown below. Here, activity level is considered as sales volume in units.

$V a r i a b l e \cos t p e r u n i t = \frac{H i g h e s t t o t a l \cos t - L o w e s t t o t a l \cos t}{H i g h e s t s a l e s v o l u m e - L o w e s t s a l e s v o l u m e}$

$F i x e d \cos t = H i g h e s t t o t a l \cos t - (var i a b l e \cos t p e r u n i t) \times (H i g h e s t s a l e s v o l u m e)$

1.

To Plot:

A scatter diagram for the given data with sales volume in units, plotted on the horizontal axis and total cost plotted on the vertical axis.

Answer 8

To determine

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

Answer 9

To determine

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

Answer 10

To determine

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Answer 11

To determine

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 21 - Prob. 1DQ Ch. 21 - Prob. 2DQ Ch. 21 - When output volume increases, do fixed costs per...Ch. 21 - Prob. 4DQ Ch. 21 - Prob. 5DQ Ch. 21 - Describe the contribution margin ratio in...Ch. 21 - Prob. 7DQ Ch. 21 - Prob. 8DQ Ch. 21 - Prob. 9DQ Ch. 21 - Prob. 10DQ

2. To estimate: Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

3. To predict: Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units

Want to see the full answer?

Chapter 21 Solutions

2.

To estimate:

Both variable cost and fixed cost using high low method and also draw total costs line on the above scatter diagram.

3.

To predict:

Future total cost when sales volume is (a) 100,000 units and (b) 170,000 units