PART B ONLY 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, account analysis and 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 1,900 units. The following are the results of that analysis:

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, account analysis and 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 1,900 units. The following are the results of that analysis: Cost Item Total Cost Variable Cost Fixed Cost Direct materials Direct labor $6,840 $9,120 $9,560 $6,910 $6,840 $9,120 $6,460 $3,610 $0 $0 $3,100 $3,300 Factory overhead Selling expenses Administrative expenses Total expenses $4,750 $0 $4,750 $37,180 $26,030 $11,150 For the high-low method, she developed the cost function using the same data from June and data from May, when production was 2,400 units and total costs were $45,239. After developing the two cost functions, the accountant used them to make predictions for the month of December, when production was expected to be 2,150 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 December? 11150 #1 IS CORRECT 2. Using account analysis, what was the accountant's estimate of total variable costs for December? 29455 #2 IS CORRECT You are correct. Your receipt no. is 156-6680 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 December? #1 IS INCORRECT 11674 2. Using the high-low method, what was the accountant's estimate of variable costs per unit for December? 18.84 #2 IS INCORRECT Submit Answer Incorrect. Tries 1/5 Previous Tries