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Question 4: Cost structure estimation Cost account direct labor direct materials Amount Fixed or variable? $6,000 OF OV $10,000 OF OV depreciation $9,000 OF
Question 4: Cost structure estimation Cost account direct labor direct materials Amount Fixed or variable? $6,000 OF OV $10,000 OF OV depreciation $9,000 OF OV rent $10,000 OF OV administrative staff salaries $7,000 OF OV Production volume was 200 units. a) Which cost structure estimation method should we use? account classification method Ohigh-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 S unit VC-S 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:
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