Question

Exercise 18-6 Cost behavior estimation-scatter diagram and high-low LO P1 Felix & Co. reports the following information about its units produced and total costs. Units Produced Units Produced 2,020 2,420 2,820 3,220 3,620 Period 1 2 3 Total Costs $2,520 3,120 3,720 4,320 4,920 Period Total Costs $5,520 6,120 6,720 7,320 8,674 0 6 420 820 1,220 1,620 7 8 4 9 10 5 Estimate total costs if 3,020 units are produced. Complete the below table to calculate the fixed cost and variable cost of sales using the high-low method. Answer is complete but not entirely correct. High-Low method- Calculation of variable cost per unit Change in sost Cost at high point minus cost at low point Variable cost per unit 1.70 6.154 Change in volume Volume at high point minus volume at low point 3.620 High-Low method-Calculation of fixed costs Total cost at the high point 8,674.00 Variable costs at the high point Volume at the high point 3.620 uits Prev 2 of 10 Next> Q Search or enter address % & 2 3 6 7 W Y S D J K X V B N I

I just need estimated total cost can you tell me how to get it thank you.

Answer 1

		high low method -Calucation of Variable cost per unit
change in cost		cost at high point minus cost at low point				6154	variable cost per unit		1.7
change in vomume		vol at high point minus volume at high point				3,620
		high low method -calucation of the fixed cost
total cost of high point					8,674
variable cost at high points
Volume at high point				3,620
Variable cost per unit				1.7
total variable cost at high point					6,154
total fixed cost					2,520
total cost at low point					2,520
Variable cost at low point
Volume at low point				0
Variable cost per unit				1.7
total variable cost at high point					0
total fixed cost					2,520
Estimated total cost					7654
Estimated total cost =			3020 units *1.7 +2520
			7654