This problem has two parts.In Part A, you are asked to do a 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).

Part A (5 tries; 5 points) 1. Using account analysis, what was the accountant's estimate of total xed costs for December? [: 2. Using account analysis, what was the accountant's estimate of total variable costs for December? [: Tries 0/5 Part B (5 tries; 5 points) 1. Using the high-low method, what was the accountant's estimate of total xed costs for December? [: 2. Using the high-low method, what was the accountant's estimate of variable costs per unit for December? [: ( $55552}; ) Tries 0/5 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 $90. Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, 1) account analysis, and 2) 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 1,600 units. The following are the results of that analysis: Cost Item Total Cost Variable Cost Fixed Cost Direct materials $7,040 $7,040 $0 Direct labor $7,840 $7,840 $0 Factory overhead $8,870 $5,440 $3,430 Selling expenses $5,600 $1,760 $3,840 Administrative expenses $4,800 $0 $4,800 Total expenses $34,150 $22,080 $12,070 For the high-low method, she developed the cost function using the data from June above and data from August, when production was 2,400 units and total costs were $46,425. After developing the two cost functions, the accountant used them to make predictions for the month of December, when production was expected to be 2,275 units. REQUIRED [ROUND UNIT COSTS TO THE NEAREST CENT AND TOTAL COSTS TO THE NEAREST DOLLAR.]