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Stuart Woodcraft Company manufactures antique wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks
Stuart Woodcraft Company manufactures "antique" wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year: Month January February March April May June July August September October November December Number of Cabinets Produced 880 3,610 1,920 670 1,590 1,320 1,120 1,730 2,260 2,930 3,300 380 Total Cost $21,200 33,30 29,800 18,4ee 28,100 27,3ee 25,600 31,500 32,900 31,200 32,600 13,920 Required a. To understand the department's cost behavior, you decide to plot the points on graph paper and sketch a total cost line. (1) Enter the number of units and their costs in increasing order. b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (4) Calculate the total cost assuming 1,100 cabinets are made. Complete this question by entering your answers in the tabs below. Required A Required B Enter the number of units and their costs in increasing order. Month Number of Cabinets Produced Total Cost Required A Required B > b. Using the high-low method, compute the total cost equation for the preceding data. (1) Compute the variable cost per unit. (2) Compute total fixed costs. (4) Calculate the total cost assuming 1,100 cabinets are made. Complete this question by entering your answers in the tabs below. Required A Required B Using the high-low method, compute the total cost equation for the preceding data. Compute the variable cost per unit, total fixed costs, and total cost assuming 1,100 cabinets are made. Variable cost per unit Total fixed costs Total costs
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