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.
Homework Answers
Answer
- Variable Cost per unit
|
A |
Difference in Cost |
$ 6,000.00 |
|
B |
Difference in units |
5,000 |
|
C = A/B |
Variable cost per unit |
$ 1.20 |
- Fixed Cost calculation
|
Working |
High Level |
Low Level |
|
|
A |
Total Cost |
$ 28,000.00 |
$ 22,000.00 |
|
B |
Total Units |
15000 |
10000 |
|
C |
Variable cost per unit |
$ 1.20 |
$ 1.20 |
|
D = B x C |
Total Variable cost |
$ 18,000.00 |
$ 12,000.00 |
|
E = A - D |
Total Fixed Cost |
$ 10,000.00 |
$ 10,000.00 |
- Answers
Total Fixed Cost = $ 10,000
Variable cost per unit = $ 1.20
Add Answer to:
Level of Activity Total Cost Units of Activity
Highest $28,000 15,000
Lowest $22,000 10,000
Difference $6,000...
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