Question
(1) Household Trinkets documented their production levels and overhead costs for the past five months as follows: PRODUCTION LEVEL COSTS January 20,500 units $502,500 February
(1) Household Trinkets documented their production levels and overhead costs for the past five months as follows: PRODUCTION LEVEL COSTS January 20,500 units $502,500 February 20,675 units $510,000 March 21,500 units $542,500 April 22,500 units $552,500 May 21,000 units $537,500 June 25,000 units $592,500 July 20,450 units $503,000 August 24,000 units $582,500 September 23,500 units $572,500 October 21,500 units $537,500 November 23,750 units $592,500 December 22,900 units $503,000 Using the information above, please complete the following: a. Using the high-low method, what is the variable cost per unit? (show your work) b. Using the high-low method, what is the fixed cost? (show your work) c. Using the high-low method, what would you expect the total cost of producing 30,000 units to be? (show your work)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started