Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 5, Problem 5.2DI
Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
| Units Produced | Total Cost | |
| March | 10,000 | $18,000 |
| April | 9,000 | 16,650 |
| May | 10,500 | 18,580 |
| June | 8,800 | 16,200 |
| July | 9,500 | 17,100 |
(a) Compute the variable- and fixed-cost elements using the high-low method.
(b) Estimate the total cost if the company produces 9,200 units.
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Students have asked these similar questions
M.G. Gabon, REB, accumulates the following data concerning a mixed cost, using units
produced as the activity level.
Month
Units Produced
Total Cost
March
9,800
Php 14,740
April
8,500
13,250
May
7,000
11,100
June
7,600
12,000
July
8,100
12,460
Estimate the total cost if the company produces 6,000 units.
Compute the fixed cost elements using the high-low method.
Compute the variable cost elements using the high-low method.
Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level.
                      Miles         Total                                Miles            Total
                   Driven         Cost                                Driven         Cost
Â
January         8,000    $14,150    March        8,500         $15,000
Â
February       7,500    13,500     April           8,200       14,490
Compute the variable- and fixed-cost elements using the high-low method
Company has decided to use the high-low method to estimate the total cost andthe fixed and variable cost components of the total cost. The data for various levels ofproduction are as follows:Units Produced Total Costs8,100 $525,00011,250 630,00018,100 690,000a. Determine the variable cost per unit and the total fixed cost.b. Based on part (a), estimate the total cost for 15,000 units of production.
Chapter 5 Solutions
Managerial Accounting: Tools for Business Decision Making
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