High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow:   Total Costs Units Produced January $219,590   2,710 units February 168,480   1,680   March 262,080   4,080   Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a.  Variable cost per unit $ b.  Total fixed cost

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter6: Cost-volume-profit Analysis
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Problem 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...
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High-Low Method

The manufacturing costs of Ackerman Industries for the first three months of the year follow:

  Total Costs Units Produced
January $219,590   2,710 units
February 168,480   1,680  
March 262,080   4,080  

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.

a.  Variable cost per unit $
b.  Total fixed cost  
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