Question

Superior Company produces wooden picnic tables. Each table is constructed out of cedar boards and sells for $500. The tables are sold out of the Company's retail store and online, directly from the manufacturer. In January, they sold 200 tables and in June they sold 1,200 tables. Below is a list of select cost information for Superior Company for two accounting periods: JuneINSTR $360,000 1) For each cost shown above, indicate whether it is fixed, variable, or 540,000 105,000 48,000 10,300 4,100 NS: January $60,000 90,000 55,000 8,000 10,300 4,100 edar boards Direct labor ixed (3 pts). ) For the mixed cost, use the high-low method to separate the variable nd fixed portions of the cost (4 pts). Use your answer to (2) to write an equation that could be used to redict future total mixed costs at any production level (1 pt). anufacturing OH les Commissions ce supplies n insurance 4) If Superior Company produces and sells 800 tables next month, calculate total manufacturing costs (2 pt).

Answer 1

The above answer has been presented in the supporting sheet. In this question first costs has been identified that is weather variable, mixed or fixed. Then mixed cost has been segregated through high low cost method and equation developed. Then manufacturing coat calculated for 800 desks in attached sheet.