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 1 2 3 4 5 6 7 8 9 10 11 12 319,500 164,500 264,500 204,500 289,500 189,500 360,500 269,500 76,100 149,500 93,500 99,500 Total Cost $ 157,000 100,750 205, 100 99,500 201,000 111,500 281,644 151,250 65,500 130, 125 93,500 82,150 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. Note: Do not round intermediate calculations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
1
2
3
4
5
T7BSGHA
6
8
9
10
11
12
319,500
164,500
264,500
204,500
289,500
189,500
360,500
269,500
76,100
149,500
93,500
99,500
Total Cost
$ 157,000
100, 750
205, 100
Total cost at the highest volume
Variable costs at highest volume:
Highest volume
Variable cost per unit
Total variable costs at highest volume
Total fixed costs
99,500
201,000
111,500
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method.
Note: Do not round intermediate calculations.
Total cost at the lowest volume
Variable costs at lowest volume:
Lowest volume
Variable cost per unit
Total variable costs at lowest volume
Total fixed costs
281,644
151,250
65,500
130, 125
93,500
82,150
High-Low method - Calculation of variable cost per unit
High-Low method - Calculation of fixed costs
0
Transcribed Image Text: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 1 2 3 4 5 T7BSGHA 6 8 9 10 11 12 319,500 164,500 264,500 204,500 289,500 189,500 360,500 269,500 76,100 149,500 93,500 99,500 Total Cost $ 157,000 100, 750 205, 100 Total cost at the highest volume Variable costs at highest volume: Highest volume Variable cost per unit Total variable costs at highest volume Total fixed costs 99,500 201,000 111,500 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. Note: Do not round intermediate calculations. Total cost at the lowest volume Variable costs at lowest volume: Lowest volume Variable cost per unit Total variable costs at lowest volume Total fixed costs 281,644 151,250 65,500 130, 125 93,500 82,150 High-Low method - Calculation of variable cost per unit High-Low method - Calculation of fixed costs 0
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