Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.) Alden Co's monthly unit sales and total cost data for its operating activities of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [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 1 320,000 $160,000 7 340.000 $220,00 160,000 100,000 8 280,000 160,000 3 280,000 220,000 80,000 54,000 200,000 100,000 160,000 140,000 300,000 230,000 100,000 100,000 200,000 120,000 110,000 50,000 2 4 5 6 9 10 11 12 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 2 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 faced costs rences 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 Required information 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 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 1 320,000 $160,000 7 340, eee $220,000 2 160,000 100,000 8 280,000 160,000 3 280,000 220,000 80,000 64,000 4 200,000 100,000 10 160,000 140,000 300,000 230,000 11 100,000 100,000 200,000 120,000 12 110,080 80,000 9 5 6 2. Predict future total costs when sales volume is (a) 200,000 units and (b) 300,000 units. Predictions 200,000 300.000 Sales (units) Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

3rd Edition

0070967601, 978-0070967601

More Books

Students also viewed these Accounting questions

Question

Is a burger a sandwich?

Answered: 1 week ago