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Alden Companys monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month Units Sold
Alden Companys monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs.
Month | Units Sold | Total Cost | Month | Units Sold | Total Cost |
---|---|---|---|---|---|
1 | 320,000 | $ 157,500 | 7 | 360,000 | $ 278,000 |
2 | 165,000 | 101,250 | 8 | 270,000 | 151,750 |
3 | 265,000 | 205,600 | 9 | 76,000 | 65,000 |
4 | 205,000 | 100,000 | 10 | 150,000 | 130,625 |
5 | 290,000 | 201,500 | 11 | 94,000 | 94,000 |
6 | 190,000 | 112,000 | 12 | 100,000 | 81,650 |
1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)
! Required information [The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month 1 Units Sold 320,000 165,000 265,000 205,000 290,000 190,000 Total Cost $ 157,500 101,250 205,600 100,000 201,500 112,000 Month 7 8 9 10 11 12 Units Sold 360,000 270,000 76,000 150,000 94,000 100,000 Total Cost $ 278,000 151, 750 65,000 130, 625 94,000 81,650 4 5 6 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) Change in cost High-Low method - Calculation of variable cost per unit Cost at high point minus cost at low point Volume at high point minus volume at low point High-Low method - Calculation of fixed costs Change in volume Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costsStep by Step Solution
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