Answered step by step
Verified Expert Solution
Question
1 Approved Answer
w 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
w 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 Units Sold 317,000 Total Cost $ 154,500 2 162,000 98,250 3 262,000 202,600 4 202,000 97,000 5 287,000 198,500. 6 187,000 109,000 7 363,000 299,984. 8 267,000 148,750 9 76,600 68,000 10 147,000 127,625 11 91,000 91,000 12 97,000 84,650 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 Cost at highest volume- Cost at lowest volume Highest volume-Lowest volume 231,984 Variable cost per unit $ 0.811 286,400 Total cost at the highest volume $ High-Low method Calculation of fixed costs 154,500.00 Variable costs at highest volume: Highest volume 363,000 units sold Variable cost per unit $ 0.81 Total variable costs at highest volume < Prev 5 6 of 13 Next > ! of 2 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 Units Sold 1 317,000 Total Cost $ 154,500 apped 2 162,000 3 262,000 98,250 202,600 4 202,000 97,000 5 287,000 198,500- 6 187,000 109,000 7 363,000 Book 299,984 8 267,000 148,750 9 76,600 68,000 10 147,000 127,625 11 91,000 91,000 12 97,000 84,650 2. Predict future total costs when sales volume is (a) 374,000 units and (b) 414,000 units. 374,000 units 414,000 units Total cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started