Using the data in P4-2 and a piece of graph paper:

1. Plot the data points on the graph and draw a line by visual inspection, indicating the trend shown by the data points.
2. Determine the variable cost per unit and the total fixed cost from the information on the graph.
3. Determine the variable cost to be charged to the product for the year.
4. Determine the fixed cost to be charged to factory overhead for the year.
5. Do these answers agree with the answers to P4-2? Why or why not?

Transcribed Image Text:

Units Cost Units Cost