Required information [The following information applies to the questions displayed below] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month 1 2 3 4 5 6 Units Sold 324,500 169,500 269,500 209,500 294,500 194,500 Total Cost Honth $ 162,000 105,750 210,100 104,500 206,000 116,500 10 11 12 Units Sold 355,500 274,500 75,100 154,500 98,500 104,50 Total Cost $ 245,564 156,250 60,500 135, 125 98,500 77,150 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
Required information [The following information applies to the questions displayed below] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month 1 2 3 4 5 6 Units Sold 324,500 169,500 269,500 209,500 294,500 194,500 Total Cost Honth $ 162,000 105,750 210,100 104,500 206,000 116,500 10 11 12 Units Sold 355,500 274,500 75,100 154,500 98,500 104,50 Total Cost $ 245,564 156,250 60,500 135, 125 98,500 77,150 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 3DQ: Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What...
Related questions
Question
help with all work, steps , explanation , computation , formula thanks answer in text
![Required information
[The following information applies to the questions displayed below]
Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable
and fixed costs.
Month
1
2
3
4
5
Units Sold
324,500
169,500
269,500
209,500
294,500
194,500
Total Cost
$ 162,000
105,750
210,100
104,500
206,000
116,500
Honth
7
8
10
11
12
Units Sold
355,500
274,500
75,100
154,500
98,500
104,500
Total Cost
$ 245,564
156,250
60,500
135,125
98,500
77,150
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate
calculations.)
A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3043e5a4-d9a9-4b0a-bd3e-33f691931f0e%2Ffe3dd316-6bd1-4215-835b-c15cdc33b510%2Fpfhi43_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable
and fixed costs.
Month
1
2
3
4
5
Units Sold
324,500
169,500
269,500
209,500
294,500
194,500
Total Cost
$ 162,000
105,750
210,100
104,500
206,000
116,500
Honth
7
8
10
11
12
Units Sold
355,500
274,500
75,100
154,500
98,500
104,500
Total Cost
$ 245,564
156,250
60,500
135,125
98,500
77,150
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate
calculations.)
A
![1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate
calculations.)
Total cost at the high point
Variable costs at the high point
Volume at the high point
Variable cost per unit
Total variable costs at the high point
Total fixed costs
Total cost at the low point
Variable costs at the low point
Volume at the low point
Variable cost per unit
Total variable costs at the low point
Total fixed costs
High-Low method-Calculation of variable cost per unit
High-Low method-Calculation of fixed costs
Units
Required information
[The following information applies to the questions displayed below]
Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable
and fixed costs.
Total
Month
1
2
3
4
5
Units Sold
324,500
169,500
269,500
209,500
294,500
194,500
Total Cost
$ 162,000
105,750
210,100
104,500
206,000
116,500
2. Predict future total costs when sales volume is (a) 381,000 units and (b) 421,000 units.
Predictions
(a)
381,000
Month
7
8
9
10
11
12
(b)
Units Sold
355,500
274,500
75,100
154,500
98,500
104,500
421,000
Total Cost
$ 245,564
156,250
60,500
135,125
98,500
77,150](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3043e5a4-d9a9-4b0a-bd3e-33f691931f0e%2Ffe3dd316-6bd1-4215-835b-c15cdc33b510%2F4js648n_processed.png&w=3840&q=75)
Transcribed Image Text:1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate
calculations.)
Total cost at the high point
Variable costs at the high point
Volume at the high point
Variable cost per unit
Total variable costs at the high point
Total fixed costs
Total cost at the low point
Variable costs at the low point
Volume at the low point
Variable cost per unit
Total variable costs at the low point
Total fixed costs
High-Low method-Calculation of variable cost per unit
High-Low method-Calculation of fixed costs
Units
Required information
[The following information applies to the questions displayed below]
Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable
and fixed costs.
Total
Month
1
2
3
4
5
Units Sold
324,500
169,500
269,500
209,500
294,500
194,500
Total Cost
$ 162,000
105,750
210,100
104,500
206,000
116,500
2. Predict future total costs when sales volume is (a) 381,000 units and (b) 421,000 units.
Predictions
(a)
381,000
Month
7
8
9
10
11
12
(b)
Units Sold
355,500
274,500
75,100
154,500
98,500
104,500
421,000
Total Cost
$ 245,564
156,250
60,500
135,125
98,500
77,150
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub