Question
Inspection costs at one of Ratulowski Corporation's factories are listed below: Units Produced Inspection Costs April 909 $ 16,612 May 957 $ 17,000 June 915
Inspection costs at one of Ratulowski Corporation's factories are listed below:
| Units Produced | Inspection Costs | |
|---|---|---|
| April | 909 | $ 16,612 |
| May | 957 | $ 17,000 |
| June | 915 | $ 16,665 |
| July | 899 | $ 16,510 |
| August | 921 | $ 16,694 |
| September | 906 | $ 16,580 |
| October | 923 | $ 16,732 |
| November | 863 | $ 16,120 |
| December | 902 | $ 16,538 |
Management believes that inspection cost is a mixed cost that depends on units produced.
Using the high-low method, the estimate of the fixed component of inspection cost per month is closest to:
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Introduction To Managerial Accounting
Authors: Peter C. Brewer, Ray H. Garrison, Eric W. Noreen
2nd Edition
0072922990, 9780072922998
