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
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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