This problem has two parts In Part A, you are asked to do account analysis based on cost and activity information that you are given for one particular month In Part B, you are asked to do the high low method based on cost and activity information for that same month and another one Note that for both parts, you are asked to make predictions for the same month Each part of the problem is worth five points and has two questions There is no partial credit within a part, so to get the five points for a part, you must answer both questions correctly You get five tries for each part (not for each individual question) Mears Production Company makes several products and sells them for an average price of $70 Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, account analysis and high low In both cases, she used units of production as the independent variable For the account analysis approach, she developed the cost function by analyzing each cost item in June, when production was 1,700 units The following are the results of that analysis Cost Item Total Cost Variable Cost Fixed Cost Direct materials $6,290 $6,290 $0 Direct labor $8,330 $8,330 $0 Factory overhead $8,260 $4,760 $3,500 Selling expenses $6,700 $3,060 $3,640 Administrative expenses $4,850 $0 $4,850 Total expenses $34,430 $22,440 $11,990 For the high low method, she developed the cost function using the same data from June and data from May, when production was 2,400 units and total costs were $44,860 After developing the two cost functions, the accountant used them to make predictions for the month of October, when production was expected to be 2,200 units REQUIRED ROUND UNIT COSTS TO THE NEAREST CENT AND TOTAL COSTS TO THE NEAREST DOLLAR Part A 1 Using account analysis, what was the accountant's estimate of total fixed costs for October 2 Using account analysis, what was the accountant's estimate of variable costs per unit for October Tries 0 5 Part B 1 Using the high low method, what was the accountant's estimate of total fixed costs for October 2 Using the high low method, what was the accountant's estimate of total variable costs for October

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This problem has two parts. In Part A, you are asked to do account analysis based on cost and activity information that you are given

This problem has two parts. In Part A, you are asked to do account analysis based on cost and activity information that you are given for one particular month. In Part B, you are asked to do the high-low method based on cost and activity information for that same month and another one. Note that for both parts, you are asked to make predictions for the same month. Each part of the problem is worth five points and has two questions. There is no partial credit within a part, so to get the five points for a part, you must answer both questions correctly. You get five tries for each part (not for each individual question). ______________________________________________________ Mears Production Company makes several products and sells them for an average price of $70. Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, account analysis and high-low. In both cases, she used units of production as the independent variable. For the account analysis approach, she developed the cost function by analyzing each cost item in June, when production was 1,700 units. The following are the results of that analysis:

Cost Item	Total Cost	Variable Cost	Fixed Cost
Direct materials	$6,290	$6,290	$0
Direct labor	$8,330	$8,330	$0
Factory overhead	$8,260	$4,760	$3,500
Selling expenses	$6,700	$3,060	$3,640
Administrative expenses	$4,850	$0	$4,850
Total expenses	$34,430	$22,440	$11,990

For the high-low method, she developed the cost function using the same data from June and data from May, when production was 2,400 units and total costs were $44,860.

After developing the two cost functions, the accountant used them to make predictions for the month of October, when production was expected to be 2,200 units.

REQUIRED [ROUND UNIT COSTS TO THE NEAREST CENT AND TOTAL COSTS TO THE NEAREST DOLLAR.] Part A 1. Using account analysis, what was the accountant's estimate of total fixed costs for October? 2. Using account analysis, what was the accountant's estimate of variable costs per unit for October?

Tries 0/5

Part B 1. Using the high-low method, what was the accountant's estimate of total fixed costs for October? 2. Using the high-low method, what was the accountant's estimate of total variable costs for October?