Question
Question 5 Time: 33 minutes Total: 20 marks Below are the processing costs of Darnell Products observed over the last 10 months: Month Units Produced
Question 5
Time: 33 minutes
Total: 20 marks
Below are the processing costs of Darnell Products observed over the last 10 months:
| Month | Units Produced | Processing Cost |
| 1 | 7,500 | $44,000 |
| 2 | 11,000 | 60,000 |
| 3 | 14,500 | 58,990 |
| 4 | 5,500 | 20,000 |
| 5 | 9,000 | 47,000 |
| 6 | 8,500 | 52,000 |
| 7 | 3,500 | 25,000 |
| 8 | 4,000 | 21,000 |
| 9 | 11,500 | 52,000 |
| 10 | 6,000 | 41,000 |
- Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + bx. (15 marks)
- Predict the total processing cost if 14,000 units are produced. (5 marks)
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Understanding Financial Accounting
Authors: Christopher D. Burnley
2nd Canadian Edition
9781119406921
