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Inspection costs at one of A Corporation's factories are listed below: Units Produced Inspection Cost February......... 905 $16,212 March............. 949 $16,600 April................ 911 $16,265 May................
Inspection costs at one of A Corporation's factories are listed below:
|
| Units Produced | Inspection Cost |
| February......... | 905 | $16,212 |
| March............. | 949 | $16,600 |
| April................ | 911 | $16,265 |
| May................ | 895 | $16,110 |
| June............... | 917 | $16,294 |
| July................. | 902 | $16,180 |
| August............ | 919 | $16,332 |
| September...... | 859 | $15,760 |
| October........... | 898 | $16,138 |
Management believes that inspection cost is a mixed cost that depends on units produced.
- Using the high-low method, calculate the estimate of the variable component of inspection cost per unit produced
- Using the high-low method, calculate the estimate of the fixed component of inspection cost per month
- Using the high-low method, calculate the estimate of the total inspection cost if projected units produced for November are 996.
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