how would i solve for the unit vairable cost and the the total fixed costs?
a. Use account analysis to estimate total fixed costs per year, and the variable cost percent b. Estimate the total costs for this coming year assuming 120 clients will be served. 36. High-Low Method. Castilla Company produces smart phones. Management wants to esme of production equipment used to produce smart phones. The company reported the following $20,000 35 Account annual basis. Assume cos indicate the following costs were in Supplies Advertising staff (hourly employees) 5170,000 Manager salary $90,000 Building Rental Required: $56,000 form Y = 1+ vX by in the dollar 37. Scattergraph Method. Castilla Company produces smart phones. Management wants to est a. Use the four steps of the high-low method to estimate total fixed costs per month and the cost per machine hour. State your results in the cost equation form Y = f + vX by filling in the amounts for fand v. b. What would Castilla Company's estimated costs be if it used 50,000 machine hours next me c. What would Castilla Company's estimated costs be if it used 15,000 machine hours next might you feel uncomfortable estimating costs for 15,000 machine hours? cost data related to production equipment: Reporting Period (Month) Total Costs Machine Hours 45,000 $920,000 January 25,000 600,000 February 20,000 500,000 March 90,000 1,100,000 April May 1.140,000 95,000 June 620,000 30,000 July 880,000 38,000 August 910,000 48,000 September 1,060,000 78,000 October 960,000 51,000 November 1,400,000 96,000 December 980,000 54,000 Required: cost of production equipment used to produce smart phones. The company reported Hound to the nearest cent and other amounts to the nearest der 16. High-Low Method Correct Correct Correct Correct TO 14 Step 1: Identify the high and low actity levels from the data set The high data point dollar amount $1.400.000 The high data point activity level is 38.000 The low dosta point della mentis 5500.000 The low data point activity level is: 20.000 Step 21 Callate the variable cost per unit ( units are measured in machine hours. Change in cost Unit variable costs) Change in activity $1.400.000 $96,000 burs hours $120.00 per machine hour (rounded to nearest cent) Step 3: Calculate the total fixed costs. Use the les activity level data point for your calculation: Total fixed cost- Step 4: State the results is equation form Y-f+vX. h. Using the equation from step 4 above, substitute machine hours for X and solve for Y: Y Y hours ) Incorrect Incorrect Incorrect Using the equation from part a substitute machine hours for X and solve for Y: hours) Incorrect Correct Choose from the possible answers below using the dropdown menu 2. 15,000 machine hours is likely within the relevant range so there is no concern with the estimate b. 15.000 machine hours is likely outside of the relevant range so this estimate may be inaccurate e. There is no concem with this calculation since we are using historical data to make the estimate d 15,000 machine hours is much higher thanprevious months so the estimate may be inaccurate
