Chapter 3 Homework High-Low Method to Determine Fixed Cost and Variable Rate Defe Manufacturing Company had the following 12 months of data on purchasing cost and number of purchase orders. Purchasing Number of Purchase Month Cest Orders January $18,000 370 February 18060 3201 March 19,250 370 Apr 18,050 4101 May 18,345 400 June 10,500 450 July 19,670 440 August 21,060 570 September 18430 440 October 20.020 500 November 18,000 470 13,340 400 December Required: 1. Determine the high point and the in Hath with Nigh number of purchase orders Honth with low number of purchase orders Check My Workmore Check My work u CO Chapter 3 Homework November 18,000 470 December 19,340 400 Required ebook Print tem 1. Determine the high point and the low point Month with high number of purchase orders Month with low number of purchase onders 2. Calculate the variable rate for purchasing cost based on the number of purchase orders. (Round to the nearest cent.) per purchase order 3. Calculate the fixed monthly cost of purchasing 4. Write the cost formula for the purchasing activity showing the fixed cost and the variable rate. Round variable rate to the nearest cent Total purchasing cost 5. If Dohini Manufacturing Company estimates that next month will have 440 purchase orders, what is the total estimated purchasing cost for that month? 6. What if Dohin Manufacturing wants to estimate purchasing cost for the coming year and expects 5,350 purchase orders? What will estimated total purchasing cost be? What is the total fixed purchasing cust Why doesn't it equal the fixed cost calculated in Requirement 3 above? High-Low Method to Determine Fixed Cost and Variable Rate Dohini Manufacturing Company had the following 12 months of data on purchasing cost and number of purchase orders Purchasing Cost Number of Purchase Month Orders January $58,060 370 February 18,000 320 March 19,250 370 April 18.050 410 May 19,345 400 June 19,500 50 My 19,670 460 August 21,060 570 September 19,430. 440 October 20,020 500 November 10,800 470 December 19,340 450 Required 1. Determine the high point and the low point Month with high number of purchase orders Month with low number of purchase orders NOW Online teaching and learning res Organtine aching and ning Chapter 3 Homework Book Print m November 18,800 470 December 19.340 400 Required: 1. Determine the high point and the low point Month with high number of purchase orders Month with low number of purchase orders 2. Calculate the variable rate for purchasing cost besed on the number of purchase orders, (Round to the nearest cent) per purchase order 3. Calculate the fixed monthly cost of purchasing 4. Write the cost formula for the purchasing activity showing the fixed cost and the variable rate. Round variable rate to the nearest cent Total purchasing cost 5. If Dohini Manufacturing Company estimates that next month will have 440 purchase orders, what is the total emated purchasing cost for that ment 6. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,350 purchase anders? What will estimated total purchasing cost be What is the total fixed purchasing cost? Why doesn't it equal the fixed cost calculated in Requirement 3 above?