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Perez Woodcraft Company manufactures antique wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks
Perez Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year: Month January February March April May June July uy September October November December Number of Cabinets Produced 860 3,660 1,960 670 1,610 1,310 1,120 1,700 2,310 2,910 3,260 380 Total Cost $21,700 32,700 29,100 18,800 28,000 27,900 25,300 31,800 32,700 31,100 32,300 13,020 August Required a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line. (1) Enter the number of units and their costs in increasing order. b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (4) Calculate the total cost assuming 2,100 cabinets are made. Complete this question by entering your answers in the tabs below. Required A Required B Enter the number of units and their costs in increasing order. Month Number of Cabinets Produced Total Cost Complete this question by entering your answers in the tabs below. Required A Required B Using the high-low method, compute the total cost equation for the preceding data. Compute the variable cost per unit, total fixed costs, and total cost assuming 2,100 cabinets are made. Variable cost per unit Total fixed costs Total costs
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