visors' salaries ment depreciation enance es 624,000 302,400 163,200 768,000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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Problem 31: High-low
Irvin Company has provided the following information:
60,000 units
Units of Output
Direct materials
Workers' wages
Supervisors' salaries
Equipment depreciation
Maintenance
Utilities
360,000
2,160,000
624,000
302,400
163,200
768,000
4,377,600
84,000 units
504,000
3,024,000
624,000
302,400
220,800
1,056,000
5,731,200
Required: Using the high-low method and the information provided above,
a. Identify the linear cost function equation and
b. Estimate the total cost at 72,000 units of output
Transcribed Image Text:Problem 31: High-low Irvin Company has provided the following information: 60,000 units Units of Output Direct materials Workers' wages Supervisors' salaries Equipment depreciation Maintenance Utilities 360,000 2,160,000 624,000 302,400 163,200 768,000 4,377,600 84,000 units 504,000 3,024,000 624,000 302,400 220,800 1,056,000 5,731,200 Required: Using the high-low method and the information provided above, a. Identify the linear cost function equation and b. Estimate the total cost at 72,000 units of output
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