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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

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[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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