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Question 4: Cost structure estimation Cost account Amount Fixed or variable? direct labor $4,000 F V direct materials $8,000 F V depreciation $5,000 F V

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Question 4: Cost structure estimation Cost account Amount Fixed or variable? direct labor $4,000 F V direct materials $8,000 F V depreciation $5,000 F V rent $5,000 F V administrative staff salaries $9,000 F V Production volume was 200 units. a) Which cost structure estimation method should we use? account classification method o high-low method b) Classify each cost account above as fixed or variable. Enter your answers in the table above. c) Estimate the cost structure parameters: total FC=$ unit VC=$ Write down the total cost equation: TC = * volume (e.g., if TC=500+2*volume, enter 500 in the first box and 2 in the second box) + d) Predict the total cost of producing 250 units: Submit

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