Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below are the processing costs of Darnell Products observed over the last 10 months: Month Units Produced Processing Cost 1 7,500 $44,000 2 11,000 60,000

Below are the processing costs of Darnell Products observed over the last 10 months:

Month

Units Produced

Processing Cost

1

7,500

$44,000

2

11,000

60,000

3

14,500

58,000

4

5,500

20,000

5

9,000

47,000

6

8,500

52,000

7

3,500

25,000

8

7,000

41,000

9

11,500

52,000

10

6,000

41,000

a.Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + bx. (6 marks)

b.Predict the total processing cost if 22,000 units are produced.(4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach

Authors: Jeffrey Slater, Mike Deschamps

14th Edition

0134729315, 978-0134729312

More Books

Students also viewed these Accounting questions

Question

Define epistemology.

Answered: 1 week ago

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago