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?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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