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uestion 4: Cost structure estimation Cost account Amount $6,000 $6,000 $8,000 $8,000 $8,000 Fixed or variable? direct labor direct materials depreciation rent administrative staff salaries
uestion 4: Cost structure estimation Cost account Amount $6,000 $6,000 $8,000 $8,000 $8,000 Fixed or variable? direct labor direct materials depreciation rent administrative staff salaries OF Ov Production volume was 200 units a) Which cost structure estimation method should we use? O account classification method O high-low method b) Classify each cost account above as fixed or variable. Enter your answers in the table above c) Estimate the cost structure parameters: total FC-$ unit VC=$. Write down the total cost equation: TC = volume (e.g., if TC-500+2*volume, enter 500 in the first box and 2 in the second box) d) Predict the total cost of producing 250 units
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