Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

! Required information [The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use

image text in transcribed

image text in transcribed image text in transcribed image text in transcribed

! Required information [The following information applies to the questions displayed below.] Alden Company's monthly data for the past year follow. Management wants to use these data to predict future variable and fixed costs. Month 1 2 3 4 5 6 Units Sold 320,000 165,000 265,000 205,000 290,000 190,000 Total Cost $ 157,500 101,250 205,600 100,000 201,500 112,000 Month 7 8 9 10 11 12 Units Sold 360,000 270,000 76,000 150,000 94,000 100,000 Total Cost $ 278,000 151,750 65,000 130,625 94,000 81,650 1. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. (Do not round intermediate calculations.) High-Low method - Calculation of variable cost per unit 0 High-Low method - Calculation of fixed costs Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point: Variable cost per unit Total variable costs at the low point Total fixed costs 2. Predict future total costs when sales volume is (a) 390,000 units and (b) 430,000 units. Predictions (a) (b) 390,000 430,000 Units Total $ 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey Of Accounting

Authors: Carl S. Warren, Amanda Farmer

9th Edition

0357132599, 978-0357132593

More Books

Students also viewed these Accounting questions

Question

1. Have a 2-week arrangement; then evaluate.

Answered: 1 week ago

Question

3. What values would you say are your core values?

Answered: 1 week ago