[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and...
[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and $800 during its lowest month. These costs corresponded to 22,000 units of production during the high month and 12,000 units during the low month. What is the variable cost per unit using the high-low method?
Select one:
a. $0.067 variable cost per unit.
b. $0.075 variable cost per unit.
c. $25 variable cost per unit.
d. $0.04 variable cost per unit.
Homework Answers
*Option(D). $0.04 variable cost per unit is the correct answer.
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[Ch5-1] K’s total utility costs during the past year were $1,200
during its highest month and...
[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and...
[Ch5-1] K’s total utility costs during the past year were $1,200 during its highest month and $800 during its lowest month. These costs corresponded to 22,000 units of production during the high month and 12,000 units during the low month. What is the variable cost per unit using the high-low method?
Alden Co.'s monthly unit sales and total cost data for its operating activities of the past...
Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month Month Units Sold 320,000 160,000 280,000 200,000 300,000 200,000 Total Cost $160,000 100,000 220,000 100,000 230,000 120,000 Units Sold 340,000 280,000 80,000 160,000 100,000 110,000 Total Cost $220,000 160,000 64,000 140,000 100,000 80,000 Problem 18-2A Part 1 1. Estimate both the variable costs per unit and the total...
Bridgeport Corp. has collected the following data concerning its maintenance costs for the past 6 months....
Bridgeport Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 17,000 $38,950 August 34,000 61,300 September 38,000 69,500 October 22,000 44,200 November 40,000 86,100 December 38,000 82,000 Compute the variable cost per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25.) Variable cost per unit $ e Textbook and Media Compute the fixed cost elements using the high-low method. Fixed costs $
Use the following data for the 4th quarter of 2009: month activity volume (#units) total costs...
Use the following data for the 4th quarter of 2009: month activity volume (#units) total costs Oct 80 $5,870 Nov 75 $6,050 Dec 105 $7,550 Required: a) Estimate fixed costs and unit variable costs using the high-low method. (hint: should you use the observations with the highest/lowest activity, or highest/lowest costs?) FC= unit VC= b) Based on the estimates from (a), what is the cost of producing 107 units?
3 Felix & Co. reports the following information about its units produced and total costs Units...
3 Felix & Co. reports the following information about its units produced and total costs Units Produced Period Period 400 Units Produced 2,000 2,400 2,800 3,200 3,600 Total Costs $2,500 3,100 3,700 4,300 4,900 Total Costs $5,500 6,100 6,700 7,300 7,990 800 1,200 1,600 Estimate total costs of 3,000 units are produced Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method & Answer is not complete. Change in cost Change...
Georgia uses the high-low method of estimating costs. Georgia had total costs of $26,800 at its...
Georgia uses the high-low method of estimating costs. Georgia had total costs of $26,800 at its lowest level of activity, when 5,600 units were sold. When, at its highest level of activity, sales equaled 17,600 units, total costs were $82,600. Georgia would estimate variable cost per unit as: Multiple Choice $4.72 $4.65 $4.79 $4.69
Flower Co. has provided you with the following information for utility costs for the past 5...
Flower Co. has provided you with the following information for utility costs for the past 5 months: Month January February March April May Units Produced 1,000 1,200 800 900 1,300 Utility Cost 1,200 1,300 1,100 1,000 1,450 Assume an equation to estimate mixed costs is Y=500+.5(x). What is the estimated total cost if 1,200 units are produced? | a) 1,100 b) 500 c) 1,000
Level of Activity Total Cost Units of Activity Highest $28,000 15,000 Lowest $22,000 10,000 Difference $6,000...
Level of Activity Total Cost Units of Activity Highest $28,000 15,000 Lowest $22,000 10,000 Difference $6,000 5,000 16. From the table above, use high & low method to determine the total fixed and variable cost per unit.
Carson, which uses the high-low method of estimating costs, reported total costs of $24 per unit...
Carson, which uses the high-low method of estimating costs, reported total costs of $24 per unit when production was at its lowest level, at 10,000 units. When production doubled to its highest level, the total cost per unit dropped to $15. Carson would estimate variable cost per unit as
Georgia uses the high-low method of estimating costs. Georgia had total costs of $24,225 at its...
Georgia uses the high-low method of estimating costs. Georgia had total costs of $24,225 at its lowest level of activity, when 5.700 units were sold. When, at its highest level of activity, sales equaled 14,200 units, total costs were $83,300. Georgia would estimate variable cost per unit as: Multiple Choice O $5.40 $6.95 O O O $4.25 O O $5.87
Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Month Month Units Sold 320,000 160,000 280,000 200,000 300,000 200,000 Total Cost $160,000 100,000 220,000 100,000 230,000 120,000 Units Sold 340,000 280,000 80,000 160,000 100,000 110,000 Total Cost $220,000 160,000 64,000 140,000 100,000 80,000 Problem 18-2A Part 1 1. Estimate both the variable costs per unit and the total...
Bridgeport Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 17,000 $38,950 August 34,000 61,300 September 38,000 69,500 October 22,000 44,200 November 40,000 86,100 December 38,000 82,000 Compute the variable cost per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25.) Variable cost per unit $ e Textbook and Media Compute the fixed cost elements using the high-low method. Fixed costs $
3 Felix & Co. reports the following information about its units produced and total costs Units Produced Period Period 400 Units Produced 2,000 2,400 2,800 3,200 3,600 Total Costs $2,500 3,100 3,700 4,300 4,900 Total Costs $5,500 6,100 6,700 7,300 7,990 800 1,200 1,600 Estimate total costs of 3,000 units are produced Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method & Answer is not complete. Change in cost Change...
Flower Co. has provided you with the following information for utility costs for the past 5 months: Month January February March April May Units Produced 1,000 1,200 800 900 1,300 Utility Cost 1,200 1,300 1,100 1,000 1,450 Assume an equation to estimate mixed costs is Y=500+.5(x). What is the estimated total cost if 1,200 units are produced? | a) 1,100 b) 500 c) 1,000
Georgia uses the high-low method of estimating costs. Georgia had total costs of $24,225 at its lowest level of activity, when 5.700 units were sold. When, at its highest level of activity, sales equaled 14,200 units, total costs were $83,300. Georgia would estimate variable cost per unit as: Multiple Choice O $5.40 $6.95 O O O $4.25 O O $5.87
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