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The J. Page Furniture Company has the following information available regarding costs at various levels of monthly production: Production volume (units) 16,000 Units 22,000 Units

The J. Page Furniture Company has the following information available regarding costs at various levels of monthly production:

Production volume (units)

16,000 Units

22,000 Units

Direct materials

$70,000

$100,000

Direct labor

66,000

90,000

Indirect materials

21,000

30,000

Supervisors salaries

12,000

12,000

Depreciation on plant and equipment

10,000

10,000

Maintenance

32,000

44,000

Utilities

15,000

21,000

Insurance on plant and equipment

1,600

1,600

Property taxes on plant and equipment

2,000

2,000

Total

$229,600

$310,600

Develop an equation for total monthly production costs using the high-low method of cost estimation, and predict total costs for a monthly production volume of 18,000 units.

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