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Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost type

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Variable Cost PU as per High Low Method= (Highest Activity Cost- Lowest Activity Cost)/(Highest Activity Unit-Lowest Activity Unit)
Type A Type B Type C
Lowest Activity Cost= 25000 60000 25000
Highest Activity Cost= 37500 60000 30000
Highest Activity Unit= 7500
Lowest Activity Unit= 5000
Variable Cost PU 5 0 2
Fixed Cost= Highest Activity Cost- Total VC at Highest Activity Level 0 60000 15000
Statement Showing Total Cost                                                             10000 units
Particulars Type A Type B Type C Total
Variable Cost 50000 0 20000 70000
Fixed Cost 0 60000 15000 75000
Total 50000 60000 35000 145000
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