Question
The following is information about the units produced and the total manufacturing costs for Rose's Rug Company for the past six months. Month # of
The following is information about the units produced and the total manufacturing costs for Rose's Rug Company for the past six months.
| Month | # of Units Produced | Total Manufacturing Costs |
| January | 28,700 | $61,400 |
| February | 31,000 | $66,000 |
| March | 25,500 | $55,000 |
| April | 26,000 | $56,000 |
| May | 30,000 | $64,000 |
| June | 29,000 | $62,000 |
Rose's Rug Company uses the high-low method to estimate its costs. Answer the following questions:
a. What is the variable cost per unit?
b. What is the monthly fixed manufacturing cost?
c. Write the cost equation that could be used to predict Rose's Rug Company's total manufacturing costs.
d. What will the total monthly manufacturing costs be if the company produces 28,000 units?
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
