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

13,200

55,000

4

5,500

20,000

5

9,000

47,000

6

8,500

52,000

7

4,200

24,400

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)

Question 4: High-Low Time: 15 minutes Total: 10 marks Below are the processing costs of Darnell Products observed over the last 10 months: Meath Units Produced Processing Cest 7.500 1100 0,00 20,000 52.000 3.500 9.000 8.500 4,200 7.000 11.SO 6,000 41.00 $2,000 41,000 DO 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)