Question

Exercise 21-6 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 Period 1 2 3 4 5 410 810 1,210 1,610 Total Costs $2,510 3,110 3,710 4,310 4,910 Period 6 7 8 9 Units Produced 2,010 2,410 2,810 3,210 3,610 Total Costs $5,510 6,110 6,710 7,310 8,286 LO Estimate total costs if 3,010 units are produced. Complete the below table to calculate the fixed cost and variable cost of sale using the high-low method. High-Low method - Calculation of variable cost per unit High-Low method - Calculation of fixed costs Total cost at the int Variable costs at the high point:

Answer 1

High Low method-Calculation of variable cost per unit
Change in cost	Cost at high point minus cost at low point	5776	Variable cost per unit	1.60
Change in volume	Volume at high point minus volume at low point	3610
Total cost at the high point		8286.00
Variable costs at the high point:
Volume at the high point	3610
Variable cost per unit	1.60
Total Variable costs at the high point		5776.00
Total fixed costs		2510.00
Total cost at the low point		2510.00
Variable costs at the low point:
Volume at the low point	0
Variable cost per unit	1.60
Total Variable costs at the low point		0.00
Total fixed costs		2510.00
Estimated total cost		7326.00	=2510+(3010*1.60)