Required information Problem 21-2A Scatter diagram and 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 Units Sold Total Cost Month Units Sold Total Cost 317,000 162,000 262,000 202,000 $154,500 98,250 202,600 $299,984 1 7 363,000 267,000 2 8 148,750 68,000 3 76,600 147,000 91,000 97,000 4 10 97,000 198,500 127,625 91,000 84,650 5 287,000 187,000 11 6 12 109,000 Problem 21-2A Part 2 2. 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 point Total fixed costs Problem 21-2A Part 3 3. Predict future total costs when sales volume is (a) 374,000 units and (b) 414,000 units. Predictions Sales (units) 374,000 414,000 Total costs