4-9 (Part Level Submission)

Waterway, Inc., produces amplifiers. Each unit sells for $900. Below is information on production/sales and costs for 2016:

Production and

Sales in UnitsProduction

CostsSelling and Admin.

CostsJanuary106$89,800$23,400February11897,10025,300March9682,90022,700April10790,40023,600May11496,50024,700June126103,30025,900July128104,90026,800August131108,90027,500September139114,59128,548October126104,60026,300November125103,10026,300December10890,30023,900Total1,424$1,186,391$304,948Average cost per unit$833.13975$214.14888

(a)

Use the high-low method to identify the fixed and variable cost components for both production costs and selling and administrative costs.

Fixed costVariable costProduction costs$

$

Selling and administrative costs$

$