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How would I go about figuring out #2 of this problem? Thank you! Superior Company produces wooden picnic tables. Each table is constructed out of
How would I go about figuring out #2 of this problem? Thank you!
Superior Company produces wooden picnic tables. Each table is constructed out of cedar boards and sells for $500. The tables are sold out of the Company's retail store and online, directly from the manufacturer. In January, they sold 200 tables and in June they sold 1,200 tables. Below is a list of select cost information for Superior Company for tvo accounting periods: edar boards Direct labor Manufacturing OH ales Commissions ce supplies min Insurance January S60,ODO 55,000 8,000 10,300 4,100 June $360,000 105,000 48,000 10,300 4,100 NSTRUCTIONS: I) For each cost shown above, indicate whether it is fixed, variable, or ixed (3 pts). ) For the mixed cost, use the high-low method to separate the variable nd fixed portions of the cost (4 pts). ) Use your answer to (2) to write an equation that could be used to redict future total mixed costs at any production level (I pt). 4) If Superior Company produces and sells 800 tables next month, calculate total manufacturing costs (2 pt).
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