Question

Felix & Co. reports the following information about its units produced and total costs. Period 1 2 3 4 5 Unito Produced 0 450 850 1,250 1,650 Total Costa $2,550 3,150 3,750 1,350 4,950 Period 6 7 0 9 10 Units Produced 2,050 2,450 2,050 3,250 3, 650 Total Coata $5,550 6,150 6, 750 7,350 9,850 ek Estimate total costs if 3,050 units are produced. Complete the below table to calculate the fixed cost and variable cost of sales by using the high-low method. High-Low method - Calculation of variable cost per unit High-Low method - Calculation of fixed costs nces Total cost at the high point Variable costs at the high point: Volume at the high point: Variable cost per unit Total variable costs at the high point Total fixed costs Total cost at the low point Variable costs at the low point: Volume at the low point Variable cost per unit Total variable costs at the low point Totalfixed costs Estimated total cost

Answer 1

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A B С D E F G H K 1 2 3 2 Change in cost Change in Volume Change at high point (9850) - Cost at low point (2550) Change at high point (3650) - volume at low point (0) 7300 Variable cost per unit= 3650 4 5 6 High-Low method-Calculation of fixed costs 7 8 9850 9 10 Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs 11 12 3650 units 2 per unit 7300 2550 2550 13 14 15 16 17 18 O units Total cost at the low point Variable costs at the high point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs per unit 19 20 2550 21

For calculation ref:

A B с D E F G H I K 1 2 3 Change in cost Change in Volume Change at high point (9850) - Cost at low point (2550) =9850-2550 Variable cost per unit= =13/14 Change at high point (3650) - volume at low point (0) =3650-0 4 5 6 High-Low method-Calculation of fixed costs 7 8 9850 9 10 Total cost at the high point Variable costs at the high point Volume at the high point Variable cost per unit Total variable costs at the high point Total fixed costs 11 12 3650 units =K3 per unit =C10*c11 1=D8-D12 13 14 15 16 17 2550 0 units Total cost at the low point Variable costs at the high point Volume at the low point Variable cost per unit Total variable costs at the low point Total fixed costs 18 =K3 per unit =C17*C18 19 20 =D15-D19 21 22