Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nikolas Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to

Nikolas Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During 2014, the high point in activity occurred in June when it produced 209 boats at a total cost of $160,520. The low point in production occurred in January when it produced 37 boats at a total cost of $47,000. Required: a. Use the high-low method to estimate the amount of fixed cost incurred each month by Nikolas Boat Company. b. Determine the total estimated cost if 160 boats are made.

image text in transcribed

Nikolas Boat Company makes inexpensive aluminum fishing boats. Production is seasonal, with considerable activity occurring in the spring and summer. Sales and production tend to decline in the fall and winter months. During 2014, the high point in activity occurred in June when it produced 209 boats at a total cost of $160,520. The low point in production occurred in January when it produced 37 boats at a total cost of $47,000 Required a. Use the high-low method to estimate the amount of fixed cost incurred each month by Nikolas Boat Comparn Fixed cost b. Determine the total estimated cost if 160 boats are made Total estimated cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

New Auditors Guide To Internal Auditing

Authors: Bruce R. Turner

1st Edition

1634540549, 978-1634540544

More Books

Students also viewed these Accounting questions