FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required information
[The following information applies to the questions displayed below.]
Felix & Company reports the following information.
Period Units Produced
0
560
960
123456789
10
1,360
1,760
2,160
2,560
2,960
3,360
3,760
Total Costs
$ 4,660
3,960
4,360
4,960
4,060
4,260
8,760
16,160
4,960
11,992
(1) Use the high-low method to estimate the fixed and variable components of total costs.
(2) Estimate total costs if 2,440 units are produced.
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Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] Felix & Company reports the following information. Period Units Produced 0 560 960 123456789 10 1,360 1,760 2,160 2,560 2,960 3,360 3,760 Total Costs $ 4,660 3,960 4,360 4,960 4,060 4,260 8,760 16,160 4,960 11,992 (1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 2,440 units are produced.
(1) Use the high-low method to estimate the fixed and variable components of total costs.
(2) Estimate total costs if 2,440 units are produced.
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
High-Low method - Calculation of variable cost per unit
High-Low method - Calculation of fixed costs
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
(2) Estimated cost if 2,440 units are produced:
Estimated total cost
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Transcribed Image Text:(1) Use the high-low method to estimate the fixed and variable components of total costs. (2) Estimate total costs if 2,440 units are produced. 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 High-Low method - Calculation of variable cost per unit High-Low method - Calculation of fixed costs 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 (2) Estimated cost if 2,440 units are produced: Estimated total cost
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