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Alice Company keeps detailed records of legal expense. April had the highest level of activity with 350,000 units and September had the lowest level of
Alice Company keeps detailed records of legal expense. April had the highest level of activity with 350,000 units and September had the lowest level of activity with only 200,000 units produced. Legal expense for April was $500,000 and for September it was $350,000. The average legal cost for the year was $300,000 and the predetermined overhead rate was $55.85 per unit produced. Show all your calculations for the following questions: a) Using the High-Low method calculate the fixed cost and the variable rate per unit. Round the variable rate to 2 decimal points. (5 marks) b) Show the cost equation for maintenance expense. (2.5 Marks) c) If the expected production is estimated to be 60,000 units what would be the estimated advertising expense be? (2.5 Marks) acti
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