High-low method-missing amounts The following data have been ekracted from the records of Puzzle Inc Production level, in units Variable costs Fixed costs Mixed costs Total costs February 10,000 $24,000 .? 20,000 $80,000 August 20,000 $? 36,000 $118,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7E: High-low method Ziegler Inc. has decided to use the high-low method to estimate the total cost and...
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Please answer all subparts because i cannot post last subpart separately as it is interlinked with above parts please answer all thanx in advance

High-low method-missing amounts The following data have been extracted from the records of Puzzle Inc.:
Production level, in units
Variable costs
Fixed costs
Mixed costs
Total costs
February
10,000
$24.000
20,000
August
20,000
$?
36,000
2
$80,000 $118.000
Required:
a. Calculate the missing costs.
b. Calculate the cost formula for mixed cost using the high-low method.
c. Calculate the total cost that would be incurred for the production of 16,000 units.
d. Identify the two key cost behavior assumptions made in the calculation of your answer
to part c.
Page 467
Transcribed Image Text:High-low method-missing amounts The following data have been extracted from the records of Puzzle Inc.: Production level, in units Variable costs Fixed costs Mixed costs Total costs February 10,000 $24.000 20,000 August 20,000 $? 36,000 2 $80,000 $118.000 Required: a. Calculate the missing costs. b. Calculate the cost formula for mixed cost using the high-low method. c. Calculate the total cost that would be incurred for the production of 16,000 units. d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c. Page 467
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