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I already entered 24,840 for the second part of problem one but it is saying it is wrong. Also i need help on the rest
I already entered 24,840 for the second part of problem one but it is saying it is wrong. Also i need help on the rest of the questions as well.
Mears Production Company makes several products and sells them for an average price of $70. Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, 1) account analysis, and 2) high-low. In both cases, she used units of production as the independent variable. For the account analysis approach, she developed the cost function by analyzing each cost item in June, when production was 1,800 units. The following are the results of that analysis: Total Cost Variable Cost Fixed Cost Cost Item Direct materials Direct labor $7,740 $7,740 $0 59,360 59,360 $0 Factory overhead $8,760 55,580 $3,180 $5,300 $2,160 $3,140 Selling expenses Administrative expenses $3,800 $0 $3,800 Total expenses $34,960 $24,840 $10,120 For the high-low method, she developed the cost function using the data from June above and data from August, when production was 2,350 units and total costs were $43,401. After developing the two cost functions, the accountant used them to make predictions for the month of October, when production was expected to be 2,200 units. REQUIRED (ROUND UNIT COSTS TO THE NEAREST CENT AND TOTAL COSTS TO THE NEAREST DOLLAR.] Part A (5 tries; 5 points) 1. Using account analysis, what was the accountant's estimate of total fixed costs for October? 10120 This answer is correct. 2. Using account analysis, what was the accountant's estimate of total variable costs for October? This answer is incorrect. Submit Answer You have entered that answer before incorrect. Tries 2/5 Previous Tries Part B (5 tries; 5 points) 1. Using the high-low method, what was the accountant's estimate of total fixed costs for October? 2. Using the high-low method, what was the accountant's estimate of variable costs per unit for October? Submit Answer Tries 0/5Step by Step Solution
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