Question
Foster, which uses the high-low method of estimating costs, reported total costs of $24 per unit when production was at its lowest level, at 10,000
Foster, which uses the high-low method of estimating costs, reported total costs of $24 per unit when production was at its lowest level, at 10,000 units. When production doubled to its highest level, the total cost per unit dropped to $15. Foster would estimate its total fixed cost as
| a. | $9 | |
| b. | $33 | |
| c. | $180,000 | |
| d. | $585,000 |
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Auditing And Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
9th Edition
1266796851, 9781266796852
