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Superior Company produces wooden picnic tables. Each table is constructed out of cedar boards and sells for $500. The tables are sold out of the
Superior Company produces wooden picnic tables. Each table is constructed out of cedar boards and sells for $500. The tables are sold out of the Company's retail store and online, directly from the manufacturer. In January, they sold 200 tables and in June they sold 1,200 tables. Below is a list of select cost information for Superior Company for two accounting periods: January June INSTRUCTIONS: Cedar boards $60,000 $360,0001) For each cost Direct labor 90,000 540,000 shown above, Manufacturing OH 55,000 105,000 indicate whether Sales Commissions 8,000 48,000 it is fixed, Office supplies 10,300 10,300 variable, or Admin insurance 4,100 4,100 mixed (3 pts). 2) For the mixed cost, use the high-low method to separate the variable and fixed portions of the cost (4 pts) 3) Use your answer to (2) to write an equation that could be used to predict future total mixed costs at any production level (1 pt). 4) If Superior Company produces and sells 800 tables next month, calculate total manufacturing costs (2 pt). Paragraph - BI E D ED* 1) Indicate whether each cost is fixed, variable or mixed by placing an "X" in the
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