Gregory's Gems accumulated the following production and overhead cost data for the past five months: Production (units): January 10,600, February 10,500, March 11,500, April 12,500, May 11,000 Overhead Cost: Cost: January $40,250, February 40,000, March 44,250, April 45,500, May 43,750 Required: A) Use the high/low method to calculate the variable cost per unit and fixed costs for Gregory's Gems. Round your answers to the nearest cent, if necessary. B) What are estimated total costs for production of 12,000 units?
Gregory's Gems accumulated the following production and overhead cost data for the past five months: Production (units): January 10,600, February 10,500, March 11,500, April 12,500, May 11,000 Overhead Cost: Cost: January $40,250, February 40,000, March 44,250, April 45,500, May 43,750 Required: A) Use the high/low method to calculate the variable cost per unit and fixed costs for Gregory's Gems. Round your answers to the nearest cent, if necessary. B) What are estimated total costs for production of 12,000 units?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Gregory's Gems accumulated the following production
and overhead cost data for the past five months:
Production (units): January 10,600, February 10,500,
March 11,500, April 12,500, May 11,000
Overhead Cost:
Cost: January $40,250, February 40,000,
March 44,250, April 45,500, May 43,750
Required:
A) Use the high/low method to calculate the variable
cost per unit and fixed costs for Gregory's Gems.
Round your answers to the nearest cent, if necessary.
B) What are estimated total costs for production
of 12,000 units?
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