Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 21-2A Cost behavior estimation LO P1 The following information applies to the questions displayed below) Alden Cos monthly unit sales and total

image text in transcribed
image text in transcribed
image text in transcribed
Required information Problem 21-2A Cost behavior estimation LO P1 The following information applies to the questions displayed below) Alden Cos 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 fored and variable costs. Month 1 2 3 Units Sola 316,500 161,500 261,500 201, see 285,500 186,500 Total Cost $154,000 97,750 202, 120 35,500 198,00 108.500 Month 7 8 9 10 11 12 Units sold 363,500 266,50 76,700 146,500 Total Cost 5303,676 148,250 65,500 127, 125 50, 500 35,150 5 6 96,500 Problem 21-2A Part 1 1. Estimate both the variable costs per unit and the total monthly foxed costs using the high-low method. (Do not round intermediate calculations.) 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 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 paint Total fixed costs Problem 21-2A Cost behavior estimation LO P1 [The following information applies to the questions displayed below) Alden Co's monthly unlt 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 Units Sold Total Cost Month Units Sold Total Cost 1 316,500 $154,000 7 363,500 $303,676 2 161,500 97,750 8 266,500 148,250 261,500 202, 100 9 76,700 68,500 201,500 96,500 10 146,500 127,125 286,500 198,000 90,500 90,500 186,500 103,500 96,500 35,150 3 4 11 12 Problem 21-2A Part 2 2. Predict future total costs when sales volume is (a) 373,000 units and (b) 413,000 units. Predictions 373,000 413 000 Sales (units) Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions