Question
Grawburg Inc. maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent
Grawburg Inc. maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below:
Calls taken Call center cost
April $7560 $81,960
May $7529 $81,773
June $7570 $82,025
July $7568 $81,997
August $7535 $81,816
September $7549 $81,895
October $7592 $82,156
November. $7579 $82,092
Acct 212
Fall 2021
Individual Project #2
Due: 10/18/2021
1.
Grawburg Inc. maintains a call center to take orders, answer questions, and handle
complaints. The costs of the call center for a number of recen
t months are listed below:
Calls Taken
Call Center Cost
April
7560
$
81,960
May
7529
$
81,773
June
7570
$
82,025
July
7568
$
81,997
August
7535
$
81,816
September
7549
$
81,895
October
7592
$
82,156
November
7579
$
82,092
Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Calculate the following using the high-low method:
- Variable Cost per unit produced (round to 2 decimal place):
- Overall Fixed Cost portion of Inspection Costs (round to 2 decimal place):
- Cost equation for Inspection Costs (in the linear equation format):
- Estimated Inspection costs when 973 units are produced (round to nearest whole dollar):
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Introductory Accounting A Measurement Approach For Managers
Authors: Daniel P. Tinkelman
1st Edition
9781138956216
