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The managerial accountant at Fast and Mean Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers

The managerial accountant at Fast and Mean Manufacturing reported that the organization contains an automated production line to manufacture and produce its products for consumers to enjoy in the marketplace. The managerial accountant reported that the company uses the high-low method to estimate the costs in the new budget. The managerial accountant reported the following information:

Month

Total Machine-Hours

Total Costs

January

250,000

$5,500,000

February

248,000

$5,260,000

March

249,000

$5,400,000

April

248,000

$5,220,000

May

238,000

$5,180,000

June

230,000

$5,130,000

Compute the slope of the mixed cost, or the variable cost per unit of activity.

Compute the vertical intercept, or the fixed cost component of the mixed cost.

What is the mixed cost equation?

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