Question
Required information Problem 5-1A (Algo) Measuring costs using high-low method LO P1 Skip to question [The following information applies to the questions displayed below.] Alden
Required information
Problem 5-1A (Algo) Measuring costs using high-low method LO P1
Skip to question
[The following information applies to the questions displayed below.] Alden Companys monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs.
Month | Units Sold | Total Cost | Month | Units Sold | Total Cost |
---|---|---|---|---|---|
1 | 322,500 | $ 160,000 | 7 | 357,500 | $ 259,900 |
2 | 167,500 | 103,750 | 8 | 272,500 | 154,250 |
3 | 267,500 | 208,100 | 9 | 75,500 | 62,500 |
4 | 207,500 | 102,500 | 10 | 152,500 | 133,125 |
5 | 292,500 | 204,000 | 11 | 96,500 | 96,500 |
6 | 192,500 | 114,500 | 12 | 102,500 | 79,150 |
Problem 5-1A (Algo) 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.)
Predict future total costs when sales volume is (a) 385,000 units and (b) 425,000 units.
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