Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost 1 321,000 $ 158,500 Month 7 Units Sold Total Cost 359,000 $270,736 2 166,000 102,250 8 271,000 152,750 3 266,000 206,600 9 75,800 64,000 4 206,000 101,000 10 151,000 131,625 5 291,000 202,500 11 95,000 6 191,000 113,000 12 101,000 95,000 80,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of variable cost per unit 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 High-Low method - Calculation of 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 0
Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold Total Cost 1 321,000 $ 158,500 Month 7 Units Sold Total Cost 359,000 $270,736 2 166,000 102,250 8 271,000 152,750 3 266,000 206,600 9 75,800 64,000 4 206,000 101,000 10 151,000 131,625 5 291,000 202,500 11 95,000 6 191,000 113,000 12 101,000 95,000 80,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of variable cost per unit 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 High-Low method - Calculation of 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 0
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
![es
!
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 Units Sold
Total Cost
Month
Units Sold
1
321,000
$ 158,500
7
359,000
Total Cost
$ 270,736
2
166,000
102,250
8
271,000
152,750
3
266,000
206,600
9
75,800
64,000
4
206,000
101,000
10
151,000
131,625
5
291,000
6
191,000
202,500
113,000
11
95,000
95,000
12
101,000
80,650
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe90ab351-097e-4d38-81a2-728d2222568d%2F6eab6ec6-5a98-4953-8290-6ccb6295a2e6%2Fs0hmg2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
!
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 Units Sold
Total Cost
Month
Units Sold
1
321,000
$ 158,500
7
359,000
Total Cost
$ 270,736
2
166,000
102,250
8
271,000
152,750
3
266,000
206,600
9
75,800
64,000
4
206,000
101,000
10
151,000
131,625
5
291,000
6
191,000
202,500
113,000
11
95,000
95,000
12
101,000
80,650
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
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
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning