Question
Asked Oct 11, 2019
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  • The manufacturing costs of Rosenthal Industries for the first three months of the year follow:
 

Total Costs

 Units Produced

January

$1,890,000

  22,500 units

February

2,800,000

  35,000

March

4,230,000

  55,000

  • Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.
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Expert Answer

Step 1

a.

Variable cost $72...

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Variable cost per unit = Highest costs- Lowest costs Highest units-Lowest units $4,230,000-$1,890, 000 55,000-22,500 =S72

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Activity Based Costing

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