Question
11.High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the
11.High-Low Method
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
| Units Produced | Total Costs | |||
| 80,000 | $25,100,000 | |||
| 92,000 | 27,206,000 | |||
| 120,000 | 32,120,000 | |||
a. Determine the variable cost per unit and the total fixed cost.
| Variable cost (Round to two decimal places.) | $ per unit |
| Total fixed cost | $ |
b. Based on part (a), estimate the total cost for 115,000 units of production.
| Total cost for 115,000 units | $ |
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Cost Managerial Accounting By Gleim Exam Questions And Explanations
Authors: Gleim
8th Edition
1581945663, 978-1581945669
