Question
High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the
High-Low Method
Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:
| Units Produced | Total Costs | |||
| 2,320 | $273,280 | |||
| 720 | 175,680 | |||
| 1,640 | 215,500 | |||
a. Determine the variable cost per unit and the total fixed cost.
| Variable cost: (Round to the nearest dollar.) | ___________ |
| Total fixed cost: | ___________ |
b. Based on part (a), estimate the total cost for 1,090 units of production.
| Total cost for 1,090 units: | __________ |
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Using QuickBooks Accountant 2018 For Accounting
Authors: Glenn Owen
16th Edition
0357042085, 9780357042083
