High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow Total Costs Units Produced $253,550 2,540 units January February 1,400 187,200 March 3,400 291,200 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit b. Total fixed cost

High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow Total Costs Units Produced $253,550 2,540 units January February 1,400 187,200 March 3,400 291,200 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit b. Total fixed cost

Name: High-Low MethodThe manufacturing costs of Ackerman Industries for the
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Description: High-Low MethodThe manufacturing costs of Ackerman Industries for the first three months of the year followTotal CostsUnits Produced$253,5502,540 unitsJanuaryFebruary1,400187,200March3,400291,200Using the high-low method, determine (a) the variable

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 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...

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Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
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