Question
Inspection costs at one of Ratulowski Corporation's factories are listed below: Units Produced Inspection Costs April 906 $ 16,312 May 951 $ 16,700 June 912
Inspection costs at one of Ratulowski Corporation's factories are listed below:
|
| Units Produced | Inspection Costs |
| ||||
| April |
| 906 |
| $ | 16,312 |
| |
| May |
| 951 |
| $ | 16,700 |
| |
| June |
| 912 |
| $ | 16,365 |
| |
| July |
| 896 |
| $ | 16,210 |
| |
| August |
| 918 |
| $ | 16,394 |
| |
| September |
| 903 |
| $ | 16,280 |
| |
| October |
| 920 |
| $ | 16,432 |
| |
| November |
| 860 |
| $ | 15,850 |
| |
| December |
| 899 |
| $ | 16,238 |
| |
Management believes that inspection cost is a mixed cost that depends on units produced.
Calculate the following using the high-low method:
| Variable Cost per unit produced (round to 2 decimal place) | $ |
| Overall Fixed Cost portion of Inspection Costs (round to 2 decimal place) | $ |
| Cost equation for Inspection Costs (in the linear equation format) | Y= |
| Estimated Inspection costs when 973 units are produced (round to nearest whole dollar) | $ |
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