Question

QUES TION 6 Allison Manufacturing Company collected the following production data for the month of November Units Produced 1,600 1,300 1,500 1,100 Total Cost $66,000 57,000 67,500 49,500 If the high-low method is used, what is the monthly total cost equation? Total cost $9,900+$36/unit Total cost $16.500 $30/unit Total cost S0+ $45/unit Total cost $13.200 $33/unit
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Answer #1

Answer - Total cost = $13,200 + $33/unit

Explanation:-

($66,000 - $49,500)/ (1600 - 1100) = $33

1100 × $33 = $36,300

$49,500 - $36,300 = $13,200

Total cost = $13,200 + $33/unit

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