Question
As part of a cost study, the cost accountant of Andrew Corp. has recorded the cost of operations at seven different levels of materials usage.
As part of a cost study, the cost accountant of Andrew Corp. has recorded the cost of operations at seven different levels of materials usage. The records show the following:
Kilos of materials Costs of operation
80 P800
60 P500
20 P500
120 P1, 200
140 P1, 280
30 P480
100 P1,040
1. Using the same high-low points method, the fixed cost of operations is?
2. Assuming 180 kilos of material usage is expected to occur next month, how much will be the estimated operations cost based on the cost function generated from high-low method?
3. Using the high-low points method, the variable cost of operations per kilo of materials used is?
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