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Can someone help me find the answers part A and B questions 1 and 2. Please list the steps along with the answer. Mears Production
Can someone help me find the answers part A and B questions 1 and 2. Please list the steps along with the answer.
Mears Production Company makes several products and sells them for an average price of $80. Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, 1) account analysis, and 2) high-low. In both cases, she used units of production as the independent variable. For the account analysis approach, she developed the cost function by analyzing each cost item in June, when production was 1,500 units. The following are the results of that analysis: Cost Item Total Cost Variable Cost Fixed Cost Direct materials $6,750 $0 Direct labor $7,350 $0 $6,750 $7,350 $7,370 $5,450 Factory overhead $4,350 $3,020 $1,650 $3,800 Selling expenses Administrative expenses $0 $3,450 $3,450 $30,370 Total expenses $20,100 $10,270 For the high-low method, she developed the cost function using the data from June above and data from August, when production was 2,400 units and tota costs were $43,279. After developing the two cost functions, the accountant used them to make predictions for the month of October, when production was expected to be 1,775 units. REQUIRED (ROUND UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR) Part A (5 tries; 5 points) 1. Using account analysis, what was the accountant's estimate of total fixed costs for October? 2. Using account analysis, what was the accountant's estimate of variable costs per unit for October? Submit Answer Tries 0/5 Part B (5 tries; 5 points) Direct materials $6,750 $6,750 $0 Direct labor $7,350 $0 $7,350 $4,350 $7,370 $3,020 Factory overhead Selling expenses Administrative expenses $5,450 $1,650 $3,800 $3,450 SO $3,450 $10,270 Total expenses $30,370 $20,100 For the high-low method, she developed the cost function using the data from June above and data from August, when production was 2,400 units and to costs were $43,279. Alter developing the two cost functions, the accountant used them to make predictions for the month of October, when production was expected to be 1.775 units REQUIRED (ROUND UNIT COSTS TO TWO DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST DOLLAR. Part A (5 tries; 5 points) 1. Using account analysis, what was the accountant's estimate of total fixed costs for October? 2. Using account analysis, what was the accountant's estimate of variable costs.per unit for October? Submit Answer Tries 0/5 Part B (5 tries; 5 points) . Using the high-low method, what was the accountant's estimate of total fixed costs for October? . Using the high-low method, what was the accountant's estimate of total variable costs for October Step by Step Solution
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