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Required information Problem 05-2A Cost behavior estimation LO P1 [The following information applies to the questions displayed below.] Alden Co.'s monthly unit sales and total
Required information Problem 05-2A Cost behavior estimation LO P1 [The following information applies to the questions displayed below.] Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month 7 Month 1 2 3 4 Units Sold 316,500 161,500 261,500 201,500 286,500 186,500 Total Cost $154,000 97,750 202,100 96,500 198,000 108,500 8 9 10 11 12 Units Sold 363,500 266,500 76,700 146,500 90,500 96,500 Total Cost $303,676 148, 250 68,500 127, 125 90,500 85,150 5 6 Problem 05-2A Part 1 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of Variable Cost per unit 0 High-Low method - Calculation of Fixed Costs Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs
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