High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 4,760     $305,760   1,960     196,560   3,290     236,090   a.  Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $fill in the blank Total fixed cost: $fill in the blank  b.  Based on part (a), estimate the total cost for 2,420 units of production. Total cost for 2,420 units: $fill in the blank

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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High-Low Method

Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows:

Units Produced Total Costs
4,760     $305,760  
1,960     196,560  
3,290     236,090  

a.  Determine the variable cost per unit and the total fixed cost.

Variable cost: (Round to the nearest dollar.) $fill in the blank
Total fixed cost: $fill in the blank 

b.  Based on part (a), estimate the total cost for 2,420 units of production.

Total cost for 2,420 units: $fill in the blank 
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