Alden Co.s monthly sales and cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.

Month	Sales				Total Cost			Month	Sales				Total Cost
1		$	316,500		$	154,000		7		$	363,500			$	303,676
2			161,500			97,750		8			266,500				148,250
3			261,500			202,100		9			76,700				68,500
4			201,500			96,500		10			146,500				127,125
5			286,500			198,000		11			90,500				90,500
6			186,500			108,500		12			96,500				85,150

References

Section BreakProblem 21-2A Scatter diagram and cost behavior estimation LO P1

2.

value: 10.00 points

Required information

2.

Estimate both the variable costs per sales dollar and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.)

High-Low method - Calculation of Variable Cost per Sales Dollar High-Low method - Calculation of Fixed Costs Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per sales dollar 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 sales dollar Total variable costs at the low point Total fixed costs

Expanded tableDifficulty: 3 Hard

Problem 21-2A Part 2Learning Objective: 21-P1 Determine cost estimates using the scatter diagram, high-low, and regression methods of estimating costs.

Check my work

3.

value: 10.00 points

Required information

Problem 21-2A Part 3

3.	Predict future total costs when sales volume is (a) $373,000 and (b) $413,000.

Expanded tableDifficulty: 3 Hard

Problem 21-2A Part 3Learning Objective: 21-P1 Determine cost estimates using the scatter diagram, high-low, and regression methods of estimating costs.