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The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variable costs in the

  

The managerial accountant at Sunny Manufacturing needs to determine how many costs are fixed costs and how many costs are variable costs in the organization. The managerial accountant reported the following information: Sunny Manufacturing Cost Report January-June 20XX Month Machine-hours Total Costs 1,800 January February 2,900 $21,500 $23,200 $19,750 March 1,000 April 2,400 $21,000 May 3,400 $23,900 a. Use the high-low method to determine the cost equation and use machine hours as the base for a cost driver in the analysis. b. Sunny expects to use 1,700 machine hours in June. What are their estimated total costs? Paragraph Y BI EEE89 44

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